Once you have made a good return on investment, you may be ready to move on to another venture.
Franchises for Sale – Getting the Best Possible Price
Once you have made a good return on investment, you may be ready to move on to another venture. When the time comes, you will want to work with a reputable business broker who can help you prepare and market your franchise for sale.
Below are some pointers in helping to position your franchise for sale for the best possible outcome.
What Are You Selling?
Make sure that you have the value proposition in order. The buyer will want to know what is on the table when responding to the franchise-for-sale advert. This includes the assets of the business, such as the stock, human capital, marketing materials, point-of-sale items, equipment, and immovable assets. It also includes knowing who the customers are and why they support your business. Have the history of the franchise on hand. The buyer will want to know the history of the brand, as well as the history of your particular business. Who owned it before you? When did you buy the franchise? How long has the business been running?
Also, make sure that the licences are up to date and that you have all the required permits to run the business at the particular location. Have the franchise agreement, lease documents and any legislative documents, such as employment contracts and notices, in place.
At the end of the day, the buyer will want to view the financial data of the franchise for sale. Of course, such information is only made available once the buyer has been qualified and has signed the necessary non-disclosure agreements. To ensure the best possible selling price, keep all your financial records. You want to be able to show your annual turnover, costs, revenue generators, and profits.
Seek Help from an Experienced Business Broker
Your franchise agreement may stipulate that you need permission from the franchisor to sell and that the franchisor must approve of the buyer. Seek help from a professional business broker to help you prepare the franchise for sale and to set a market-related price. The broker will help you determine which documents to gather, which permissions to get, and how to calculate the value of your business.
Keep in mind that the buyer also looks at the visual presentation of the business. Since you are involved in the business, it can be difficult to spot wear and tear on equipment and fixtures. Of course, you do not want to make a large capital layout for upgrades shortly before selling, but as with selling a vehicle or home, it pays to fix small things and ensure neatness of the premises. Remove clutter, clean thoroughly, and make sure that the business is presentable. To this end, a business broker can also advise you on aspects that will improve the value of the franchise for sale.
The above are only a few of the pointers that a broker can share with you. Reap the full benefits of having a professional assist in the preparation and marketing of your franchise for sale. Call us for more information and assistance to ensure that your business sells at the best possible price.