After the Sale - tidy up

Assistance during Transition
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, as well as introduce the new owner to customers, staff and go through all the procedures necessary to operate the franchise and so the buyer will get full benefit.

What to Do if No One Wants the Franchise
If no one wants to buy your franchise, there are several options you can take to close the doors and hopefully take a reduced loss on your venture. These options depend on whether you are set on selling the franchise or whether you are prepared to look at other alternatives.

Some options are:

  • Sell off pieces of the franchise.
    This involves selling off portions of the franchise, such as assets and retaining other parts of the operation. For example, you may want to sell off the manufacturing side of your franchise and retain the wholesaling section.

  • Have a "Going out of Franchise" sale.
    If you have a retail franchise you may want to have a “going out of franchise sale” as a way to recoup at least some money and reduce your losses. Most retail franchisees have a high mark-up on their products so they can afford to reduce prices drastically in order to generate cash and close the doors.

  • Retrench and try again.
    You may want to downsize or retrench by letting go unnecessary staff and reducing the level of your franchise and wait until the market starts to pick up again. Don't give up too easily because you don't want to lose money on your business. If you can, take your time to obtain a good price. However at the same time keep your eye on the market and the economy so you are not left holding the business for too long.