Buying or Selling Franchises
Stop climbing the corporate ladder – and create one!
We can help you find the right fit in business ownership.
We cover:
- Franchise ownership
- Misconceptions about franchising
- Building equity as a strategy
- How to find the right franchise
What is the process?
- Meet with a franchise consultant to determine your skill set, business goals, and personal preferences
- We will give you franchises to consider
- Initial phone interview with Franchisor
- Receive and read FDD
- Validation calls to 6-10 Franchisees
- Discovery Day
- Review agreement with franchise attorney
- Decision Yes or No
Selling a Franchise?
Selling an existing franchised business is much like selling any other business with these differences:
- Franchised businesses have some intangible value because of the franchise itself
- Franchised businesses will often bring a higher multiple in pricing
- Successful franchised business owners have the advantage of attracting both cash flow buyers and new franchise prospects.
There are many complex steps in selling your business. Let us minimize your stress by assisting you in locating the person with the best personality traits, skills and financial capability to take over your business.
- Exclusive Listing Agreement
- Proper Documentation
- Financials
- Tax Returns
- Copies of Contracts, Leases, etc.
- Valuation and Pricing
- Market Comparables
- Intangible Values
- Completion of Professional Marketing Package
- Finding the Right Match for Your Business (business owners, downsized executives, franchise prospects)
- Assessing the Qualifications of Buyer Prospects (which ones match your Franchisor’s profile)
- Educating prospects about the franchise industry & process
- Coaching prospects through the research and due diligence process
- Purchase Agreement
- Negotiations
- Acceptance of Purchase Agreement
- Financing Assistance for the Buyer
- Franchisor Approval
- Lease Assignments
- Closing
How much does it cost to work with a consultant?
There is no charge to work with a franchise consultant.
If I work with a franchise consultant, do I end up paying a higher franchise fee? You will pay the same franchise fee regardless of the involvement of a franchise consultant.
If I go directly to the franchise, will they negotiate the franchise fee because I didn’t use a franchise consultant? No. Franchise fees are not negotiable. They will not charge you a lower fee for going directly to the franchise.
How does a franchise consultant get paid? Franchise consultants are paid by the franchisor to find qualified candidates for their opportunity. Consultants get paid much like a recruiter. When we find a good fit between a franchisor and a potential franchisee…it is a win-win situation for everyone!
Wouldn’t it be easier to look on the Internet and get a list of available franchises? You can get lists of franchises off the Internet but it can be overwhelming with all of the opportunities available. A franchise consultant can help narrow the field and only show you opportunities that will be a good fit for you and are available in the area in which you are interested. |
