Selling a Franchise Business
Go Through the Franchise Agreement
When you buy a franchise from the franchisor, there are many agreements you need to sign. When you decide to market it off, it's time to review all the signed agreements once more. Many franchisors set certain rules to sell or move a franchise. Therefore, one must be well-informed about them so that there's no deviation from the set rules and the sales process is completed without any problem.
Inform the Franchisor
The first person you have to inform about your decision to sell the franchise may be the franchisor. Keeping the franchisor in the loop can also help getting in touch with prospective buyers in the area. Franchisors have a strong network and frequently have information about potential franchise buyers. Taking their help can get you a great deal and reduce your effort substantially. Secondly, as the franchisor will already be familiar with the buyer's details, it will result in a win-win situation for you along with the franchisor.
Study the Market
It is very important to review the market before listing your business for sale. Market research will help you identify the current market scenario and the kind of buyers you may expect for the business. It also helps in understanding if the market is booming or is slowing down, which will help you decide the selling price. A high selling price could be quoted if the market is good and vice-versa. A realistic selling price will attract potential buyers and increase the likelihood of settling the sales deal.
Decide the Sales Package
A sales package needs to be prepared to inform the buyer about all the stuff that he will get the charge of like assets, workers, equipment, materials, etc., that are a part of the company. The package must also include the price of the franchise that's fixed after thorough market study. It is the duty from the owner to inform employees about the decision of selling the company.
Advertise the Franchise
Advertising is extremely necessary to attract audience for the franchise. If efforts are not made to see the buyers, there are very less chances of someone approaching you to definitely buy the business even though, it may be among the best business opportunities. To list the franchise in the marketplace, you can place advertisements on business websites, local newspapers or contact franchise consultants who can get you touching potential buyers.
Prepare Sales Pitch
A perfect sales pitch may be the key to strike the deal. Therefore, practice your sales hype several times before actually facing potential buyers, as it will help you prepare answers for questions that are most likely to become asked. Keeping yourself well-informed of the current market developments, profit history and future prospects of the business can help in instilling confidence within the buyer.
Maintain Confidentiality
Confidentiality should be maintained till the sales deed is finalized. Keeping the info open to all may create unnecessary concern among suppliers, employees, customers and other people associated with the company. Business rivals may take undue advantage of this information which might not be good for the reputation of the franchise.
Provide Required Information
Any information that is the right of the customer must be provided. Information regarding financial accomplishment of the franchise and additional related non-financial accomplishment must be provided in the information memorandum in order to maintain transparency between both the parties. Non-disclosure of important details can lead to unnecessary problems in the future.
Do Not Hurry
Most franchise owners make the mistake of setting a closed time period for selling the business. This often makes them to stay for a price less than what the business is really worthy of. Unless there is a time constraint, it is best to give sufficient time for finding the best deal for that franchise because selling a business often takes several several weeks.
Assist the Buyer
Like you looked up to the franchisor for help whenever you were setting up the business, it is obvious how the buyer of your franchise will also ask for assist. It is your responsibility to assist the buyer and gives necessary training and advice so that he can dominate the business smoothly.
Keeping these things in mind can help you in finding a buyer for your franchise. If you present the franchise business opportunity as a lucrative one and pitch in the perfect way, you will surely be able to strike the best deal on the market.