Top 5 Tips to Prepare your Franchise for Sale
If you want to list a franchise for sale, there are a few things you must do first. Regardless of why you want to sell your franchise business, you will need to plan ahead and prepare. Follow these six tips to prep your business and ensure your sale is a success.
1. Prepare Your Documents
The first thing you should do when you have a franchise for sale is to prepare the necessary documents. Work with your accountant or bookkeeper to get your financials in order. Compile your financial statement and assemble the relevant documents like your past tax returns, balance sheet, and more. Then, you will need to look them over and fix any inaccuracies.
2. Estimate the Value of your Franchise
When selling a franchise, it is necessary to determine the value of your business. Depending on the size of your franchise, there are a few different ways you can figure out the value and your asking price. An income-based valuation is usually the most accurate. This can be obtained through a business appraiser or broker.
3. Clean Up
Every single part of your franchise should be tidy and clean so you can attract as many buyers as possible. In addition to trimming the fat, you should clean up your physical location. Get rid of the clutter, clear your old stock and extra inventory, repaint, and make any necessary repairs. You should also tidy up your digital presence, like your website and social media profiles.
4. Boost Your Franchise’s Value
When you are taking a look at your business, you may begin to see a few areas that need improvements. In these weaknesses, you may also see opportunities to increase your company’s value. You might be able to create new intellectual property, add new streams of revenue, and improving efficiency. You can also take some time to build a highly talented workforce, which your new owners will truly appreciate. By acting on these new opportunities and increasing your company’s value, you can appear even more appealing to prospective buyers.
5. Continue to Grow Your Franchise Sales
Even though you are trying to sell your franchise, you should still make an effort to keep up everyday operations. This is the best way to ensure that you make the most money for your business. After all, nobody wants to purchase a company that has neglected their customers and stalled its growth for the past few months. Your goal should be to turn over your company in its ideal performing shape.