Hot Tips for Selling a Franchise

Submitted by Fayaz on Sun, 09/14/2008 - 6:05am.
I've collected an outline of tips for you to serve as a checklist when considering selling your franchise. At first glance, it seems as though this list would be enough to get you well on your way. However, there are nuances and fine points to consider for each of these tips once you start looking a little deeper.
Over the next few months, I will dig deeper into each of these tips with my own stories and my clients experiences and the lessons learned.
 
Until then, here's the list: 
  • Have tax returns ready for buyer and SBA
  • Clean up P& L’s for accuracy and itemization
  • Add back all personal expenses, I will re-state to franchisor (factory) specs
  • Show as an Owner-Operator scenario, 40 hrs
  • Have lease ready with all terms and CAM charges, get extensions, options
  • Franchise sales /Royalty reports
  • Internal Evaluation reports, awards
  • Make store presentable, tidy
  • Address remodel issue
  • Get some latest gadgets
  • Repairs-get them done
  • Leave money on the table for repairs/remodel
  • Show potential for the location, offer valid reasons why you cannot access potential
  • A tired store and owner shows as much, so fix the problem if possible
  • Get some high comps
  • Get a valuation (important!)
  • Maintain belief in the Brand and Management
  • Have a story for all failures
  • Raise some prices
  • Engage in heavy marketing to show increase in sales and profits
  • Set a realistic Asking price
  • Take terms and seller financing, be flexible

 These are only some of the steps to take before you sell your franchise or show it for sale.......

 

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