There are certain aspects that need to be taken care of when selling franchise so that the franchise, which you worked hard to build, should generate fair price when sold. The suggestions, that can help you generate fair price for your franchise, are as under:
Let your Franchisor Know
You should keep your franchisor informed about your intention to sell the franchise. Number of franchisors may have specific rules on selling the franchise. These rules must have been listed there in the franchise contract.
Your franchisor might be able to support and help you in selling franchise, as franchisors; being in the business for quite some time; might be aware of prospective buyers who are interested in a particular territory and might be in a look out for a good opportunity to buy some franchise.
Understand the Market
After informing the franchisor about your plan of selling franchise, now it’s time to develop the primary understanding of the market before your sell your franchise. Collect the relevant data, analysis – how much of similar franchises have been sold of late. Is this the right time to sell the franchise, is the market hot? Who could be the potential buyers for your franchise?
The answer to these questions will directly affect the sale of your franchise. There are possibilities that you will find that this is not the ripe time to sell your franchise or you can also discover the actual worth of your franchise.
Do the Homework
You should do some preparation before you actually present your franchise on the market for sale. These preparations should include the right value of franchise, arranging financial details, informing key employees (if you have any) and lastly putting together a sales package.
There are certain franchises which require more upfront arrangement than other franchises. Hence, just assess your franchise falls in which category.
Advertise and get ready for Sales Pitch
Even if your franchise is amongst the best in the town, without spreading awareness among the buyers you cannot reach anywhere. Make sure that it’s rightly and appropriately advertised and promoted through every possible mediums. You can also take help of agents to promote your franchise and list it with them. In addition you need to prepare your sales pitch and practice the same for the final day.
Offer Assistance to the Buyer
Majority of occasions you may need to provide support and assistance to your buyers in terms of re-establishing the franchise after they buy it. This assistance can be of several types which may include training, technical or functional support. You may also need to work along with your buyer for quite a few months as well.