You’ve achieved success in the world of franchise. Is it time to sell now? Enjoy these great tips from Brian Knoderer, President of Sunbelt Business Brokers and co-owner of Sunbelt Indiana.
Many entrepreneurs find themselves opting to join a franchise business as they begin their entrepreneurship journey. Franchises offer a host of appealing benefits including stability, a proven concept, as well as a network of established resources. While franchise businesses continue to rank as one of the leading business opportunities, there comes a time in every business owner’s career when it’s time to sell. If you’re considering exiting your franchise, follow these tips from Sunbelt Business Brokers for reselling a franchise business with ease.
Your Guide to Reselling a Franchise
According to recent findings from the International Business Brokers Association (IBBA), experts have declared it’s currently a seller’s market and a great time for owners to consider exiting. To help guide you through your transition, utilize the following four tips.
Consult Your Franchise Agreement
Before you make any significant decisions, be sure to review your franchise agreement. Many franchisors layout specific parameters for franchisees looking to sell their business and some franchisors even offer assistance in the selling process.
In addition to reviewing the agreed-upon selling process, you should also make careful note of any transfer fees or mandatory training for the new owner once your business switches hands. While selling any type of business presents a variety of challenges for owners, reselling a franchise often involves a few more obstacles.
Contact Your Franchisor
After reviewing your franchise agreement documents, contact your franchisor as soon as possible to alert them of your exit plans. During this conversation, consider asking the following questions.
- Will I receive assistance selling my business?
- What qualifications must a prospective buyer have?
- How is my franchise location valued?
While these questions are a great start to beginning your exit process, consider enlisting the help of a certified business broker to provide the best guidance.
Prepare the Business for Sale
To receive the best asking price, ensure your business is in tip-top shape from your books to the building condition both inside and out. Consider investing in small maintenance fixes or even a professional service to obtain an accurate business valuation to further help you obtain desirable offers.
Keep in mind the franchise business industry has grown for the eighth year in a row. The industry’s performance paired with your well-prepared business should provide plenty of offers to consider.
Negotiate a Deal & Exit Your Business
After listing your business for sale, consult with your franchisor about any offers you receive. Depending on the franchisor’s level of involvement with the selling process, any prospective buyers may need to be approved before the sale is final.
Whether you choose to exit your business to pursue other opportunities or are interested in browsing other businesses for sale, be sure you’ve fulfilled your franchise agreement before starting something new.
Reselling a franchise can quickly turn into a complicated process, but that doesn’t mean you have to go through it alone! When you’ve decided it’s time to sell, contact Sunbelt Business Brokers to get in touch with a professional intermediary experienced in franchise sales near you.
Brian Knoderer is the President of Sunbelt Business Brokers. He has over 20 years of experience as a business owner and managing business transactions. As a seasoned intermediary, Brian has successfully represented companies in a broad range of industries helping business owners achieve their desired exit strategy or growth initiative.
Brian is also co-owner of Sunbelt Indiana and Managing Director of MMI Capital Partners, a franchisor focused investment banking firm.
Previously Brian was involved in several entrepreneurial ventures as well as having held corporate roles in Franchise Development for Prime Hospitality and Choice Hotels.
Brian is a graduate of Ball State University with a degree in Management Information Systems and earned his MBA from Butler University. He has received the Certified Merger & Acquisition Advisor (CM&AA) designation, holds both the Series 7 – General Security License and the Series 63 – Uniform Securities Licenses, and is a licensed Real Estate Broker. He has been affiliated with several organizations including the Entrepreneur Organization, a Member of the International Business Brokers Association, Venture Club, and a Board Member of The Entrepreneur Institute.