Sell a Franchise




Before Selling your Franchise

Many franchise owners come to a decision to sell their franchise for a variety of reasons. Even though many franchisees are sold because they are not profitable, most franchises come onto the market ...


8 Main Aspects in the Sales Process

Be clear on what you are selling. Are you selling the full franchise, including all the assets, as well as debts, or are you basically selling the assets of the franchise and taking over the liabilities yourself? ...


Valuing Your Franchise

If you are using a business broker, they can appraise your franchise. Business brokers don’t value franchisees as such. If you need a professional valuation you can get this from your accountant ...


Finding Buyers for your Franchise

Once you have decided to sell, the next step is to find potential buyers. There are a number of ways this can be done. If you intend to sell the business yourself, you need to look at the options available to you ...


Buyer and Due Diligence

The seller needs to know a little bit about the buyer before completing a deal. A good seller concerned with the clientele or customers will be concerned that the buyer is the right person to take over from ...


Negotiations

It is usual to negotiate only with one potential buyer at a time. Only when the buyer indicates he/she does not wish to proceed, should you move on to discussions with the next interested party ...


Completing the Deal

The negotiations to arrive at agreement between the two parties may have been intense, or they may have been easy. Generally both parties will be happy with what has been negotiated ...


The Sale and Purchase Agreement

It is usually the buyer’s responsibility to draft up the documentation for the purchase agreement through his/her solicitor and then send to the seller for acceptance ...


Final Settlement and Transfer

Once the agreement has been signed it is then a simple matter of arranging a deposit to finalise the sale. The deposit will be passed over to the business broker, or held by the seller as security ...


After the Sale - tidy up

The buyer will generally be required to give the seller assistance for a short period once the franchise passes over. During this time the seller will give further training to the buyer ...