What if I get the asking price of my franchise wrong?

We get it! 

You’ve worked too long and hard to get a penny less than you deserve for all the blood, sweat and tears that have gone into building your business to where it is today. 

But how can you be confident you’re not over or undervaluing your business? And why does it matter? 

The impact of undervaluing 

You’re leaving money on the table – money you could be using to achieve your personal dreams. 

Think about it like this: your personal dreams have a monetary value attached to them. 

– A house on the coast? £400k. 

– Paying off the mortgage? £150k. 

– Dream family holiday? £8k 

– Children’s university fees? £40k 

That’s £598,000. 

Your business could be worth that, or even more. 

Taking advice from the wrong people, perhaps a franchise novice giving their opinion of your business’s worth, might mean an incoming franchisee gets a real bargain at your own personal cost. 

So unless there are extreme personal circumstances, don’t sell yourself short. 

The impact of overvaluing 

An overvalued business with an unrealistic asking price is bad news. 


Well, for starters, you’ll be missing out on perfectly well qualified prospective purchasers. You’re placing yourself in a smaller pond than you should be. 

It’s challenging enough finding a suitable buyer in the right location (or willing to relocate) with the right skills and expertise, meeting your and the franchisor’s requirements, and, critically, having the right financial backing. 

With a hefty asking price, it’s quite possible the prospect will require funding support. 

Underwriters, the people responsible for making lending decisions, will check for something called debt serviceability. If a business is overvalued, it means the debt finance raised may not be easily repaid, which is likely to result in an underwriter rejecting the application as being “too high risk”. 

So, under or overvaluing the business can have serious implications. 

Attracting the wrong type of buyer is a waste of your time and money. 

It literally does pay to get a professional, independent valuation to give you the reassurance needed, and give your asking price the necessary credibility to attract serious and suitable prospects. 

Franchise Business Brokers can help – Get in touch.