Exiting your franchise profitably

Being in the forefront of action for the last 24 years has certainly been a very rewarding experience for me. In particular, it is exhilarating to see franchise owners realise the return on investment from their business. The potential for success is often initially underestimated, but it can be nothing short of life –changing.

When the time comes to walk away, what exactly will you need to get everything in order to sell your franchise profitably? Regardless of reason and circumstances, selling your business, requires planning and preparation, and it’s well worth thinking about how you might go about it, should you decide to do so in the future. To that end, here are some tips from owners who have sold their franchise successfully.

KEEP YOUR BUSINESS RECORDS IN ORDER

Business records are evidence of your activities, transactions and successes. Being able to document the kind of customer you acquire at certain times, and the process you undergo to generate leads, provide valuable insight to an incoming business owner. Most franchisor provide their franchise teams with central management system – be sure you keep yours up- to –date regularly.

UNDERSTAND THE POTENTIAL OF YOUR BUSINESS

You must be able to explain why your business is a great buy compared to a competitor a few blocks away, or any other business opportunities with the same investment value. The ability to communicate this to a prospective buyer is crucial. Do your research and get your facts right. When possible have a business forecast prepared to enable you to keep on top of the numbers in your business. Remember why your bought it and transfer that feeling of enthusiasm and anticipation to your potential buyers.

PLAN YOUR MARKETING AND ‘SHOW AROUND’ TIME

Timing has a lot to do with your successful exit. Selling your business when the season is low or there’s hardly anyone in your shop can work against your asking price. Therefore, it is worth considering marketing your business for sale leading into a busy season of your operations. Look for best media in your industry or sectors, and aim to generate few leads rather than settling for one or two enquiries. For best results, consider investing or hiring a franchise sales consultant to get the most out of every lead you generate. Remember, every opportunity lost is added cost to your sales process. Keep an eye on your exit costs.

Being in the position to sell a business is a great achievement for any business owner. Your franchisor will have a wealth of knowledge in your specific industry or business. Always secure guidance and additional support where you need it.

After all franchising is set as a win, win investment opportunity. Your successful sale is also a franchisor’s success story.

For more information about the BforB Franchise Opportunity or to talk to us about UK Franchising or International Master Licensing email: centralservices@bforb.co.uk or mel@bforb.com 

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