SELL A FRANCHISE
Sell Your Franchise
National Franchise Resales has introduced an innovative resale program that allows you to control the process and eliminates the costly broker fees! We will list your business, generate leads, assist you with the process, and introduce you to the professionals you will need to sell your business. These resources include a Business Valuation Service, Accounting Services, and Legal Services.
Let us find a buyer for your franchise!
You will be contacted within 72 hours to confirm your submission
Our Unique Approach
When selling a franchise there are very few options for finding buyers. Franchise brokers are the most commonly used option but the downside is they are expensive. They typically charge a commission equal to 10% of the sale price. There are also an abundance of listing sites but they don’t qualify the leads for you. This results in a lot of time wasted on bogus, unresponsive, and unqualified leads.
Our approach is unique because we find the buyers for you, qualify them, and then let you take over the selling process. This eliminates the middle man and allows the buyer to get information directly from the owner, who has the best insight into the strengths and challenges of the business.
We don’t just list the business on our site and wait for inquiries. We utilize a variety of social media platforms to advertise and promote your business in and around the market where your business operates. By using social media it also allows us to target specific demographics such as age, income, interests, and much more. This allows us to target people who are most likely to have an interest in your business.
We also have a list of active buyers throughout the country who are searching for a great resale opportunity. In some cases we have been able to connect sellers with qualified buyers almost immediately.
Fee Structure: We charge a one-time fee of $6,500 once the business is sold. This allows you to put us to work finding you a buyer with no money out of pocket. It also saves you a significant amount of money versus using a business broker.
Guide To Selling A Franchise
How to Sell a Franchise in 5 Easy Steps
To set yourself apart from most franchise sellers, you should take the time to document everything you can about the franchise business as an overview you can provide to potential buyers. This overview should provide the buyer with information such as 1) Why are you selling the Fanchise Business 2) When was the Franchise business established 3) What are the strengths of the business 4) What challenges need to be addressed to assist the new owner in improving the business 5) What have the annual sales been during your ownership 6) What has the cash flow been during each of those years 7) What assets come with the purchase of the business 8) What are the terms of the lease if applicable 9) How much are you asking for the franchise business 10) Will you be providing any training/ support after the sale of the franchise. Of course you can also add any other pertinent information that you deem necessary. The potential buyer will appreciate the insight you are giving them and you will be providing them with a tool that most sellers will not have to offer.
Once you list your franchise business for sale, it is imperative that you set aside some time every day to follow up with these inquiries. When someone inquires about your business there is a high level of enthusiasm on their part. Make sure that your are responding to these inquiries as quickly as possible to start the franchise selling process. If it takes you days or weeks to get back to them they will lose their enthusiasm and may have already found another opportunity.
The next thing you will want to do is make sure your franchise business is clean and organized. Whether it is retail space, a vehicle, equipment, or something else, you will want to give the potential buyer a great first impression.
The most common issue that potential buyers encounter is being able to get their hands on the financials for the franchise business of interest. After all, this is the most important factor for them when considering when buying a franchise. Therefore, it is imperative that you have an accurate and up-to-date set of financial statements for their review. We recommend at least the last 3 years of financials but more is better in this case. If you haven’t done a good job of keeping your financials organized and need assistance with this, we suggest you reach out to one of our accounting partners to help prepare a clean and thorough set of financials. If you are reluctant to share this information with each potential buyer, you should contact a lawyer from our professional resources page to draw up a Non-Disclosure Agreement. This will help protect the privacy of this information.
Franchise Business Value
The hardest part of selling a franchise is defining a price. After years of hard work and investing a good amount of money into your business, there is no doubt an emotional connection that will influence this decision. In order to find the fair market value and eliminate your emotions, it is best to leave this process to a professional. A valuation expert knows how to sell a franchise and will provide an objective assessment of your franchise business by studying the market, reviewing your financials, valuing your assets, and considering other facets of your business depending on the industry in which you are involved. The valuation expert will then provide you with a report and a fair market value for your business. This is a great tool to have when selling your business. By investing the money and being able to provide a report to a potential buyer, you will already be separating yourself from other sellers competing for the same buyer. Rarely does a seller have such a valuable tool to provide to interested parties. Another benefit to the valuation is that it eliminates or at least lessens the ability for the buyer to negotiate the price. If you are presenting the buyer with a price that has been determined to be the fair market value and a report that supports that value, the buyer has no grounds for negotiation. One last benefit that most people do not consider is the ability for the buyer to get financed. If a buyer applies for a loan and has documentation to show that they are paying a fair market value for your business, this improves their chances of being approved. Please visit our Professional Resources page to request a free consultation from a valuation expert. It is not an expensive service and this tool will greatly increase your chances of a quicker sell of your franchise.
The next step is for you to contact a lawyer to assist you with selling your franchise business. Our legal partners can prepare a Non-Disclosure Agreement, Letter of Intent (LOI), purchase agreement, and any other legal document needed based on the type of business you are selling. The attorney knows how to sell a franchise and will also hold your hand through the entire franchise selling process and assist you with closing the deal. For a transaction that has no real estate and no intricacies, you could pay as little as just a couple of thousand dollars for legal representation. Compare that to the 10% the broker would collect.
There are many ways to market your business for sale. A low cost option is to post it on some of the websites that specialize in selling franchises. The cost is usually around $50-$60 per month and will provide you with great exposure. You should also utilize social media to make people aware that you are selling. Not only can you post it on your social media accounts, there are also services that can assist you with placing an ad on facebook and other social media where you can target a specific market and demographic. Reaching out to business owners in your market is also a great option. These people are entrepreneurs and understand the nuances of owning a business. Most entrepreneurs are eager to grow and diversify so this also good pay off. The most expensive option is to use a broker. They will list the business, advertise it, and work to find you a buyer. The downside is that they charge a commission which is usually around 10% of the sale price.
We were amazed how quickly National Franchise Resales found us a buyer. Within the first week we had 2 people interested and had a signed purchase agreement within 3 weeks. I highly recommend using this company if you want to sell your business quickly.Dave W. - Indianapolis
Since we never sold a business before we were looking for someone to help us out. We didn’t really want to pay a commission to sell our business so we did some research and found National Franchise Resales. They helped us understand the process, helped us with a valuation, and recommended an attorney for the purchase agreement. We saved a lot of money too. The entire process only cost us $3,600. We definitely would recommend using this company.Tim & Shannon B. - Pittsburgh, PA
Resources for Sellers
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