franchise resales
Understand your franchise business’s worth and exit successfully
There’s a booming market for franchise resales: the British Franchise Association reports that almost 40% of new franchisees annually take over an existing franchise rather than starting from scratch.
That’s good news for anyone looking to sell… but selling a franchise can also be a distraction, for both the existing owner and for the franchisor behind them.
There’s a lot to do to prepare a business for a successful and satisfying sale, and most franchisees have no experience of selling a business – and a lot of questions.
If the process seems daunting, don’t worry: using a specialist franchise resale service gives you answers to your questions, and more that you haven’t even thought about yet!
Experienced professionals understand the right marketing channels for your business, the right messages to generate enquiries, and how to negotiate with interested parties on your behalf.
Most importantly, they know that what you want most is to be kept informed. Any franchise broker worth engaging is friendly, understanding, and excellent at communicating with you.
How we support your franchise sale
A little up-front effort goes a long way in securing the right outcome for everyone: vendor, buyer and franchisor. Our Franchise Business Broker service gives you two options:
- A valuation of your business now, and advice on increasing its value if you’re looking to sell in the future rather than right now
- End-to-end support every step of the way from valuation to marketing to sale, with regular communication throughout the process
By engaging our experienced franchise brokers, you can focus on running your business and maintaining (or increasing!) your profitability, with the confidence that everything is being taken care of properly on your behalf.
Franchise Resale Valuations
Valuing a franchise for resale can be an emotive and sometimes contentious process. Valuations have historically been conducted by accountants not typically experienced in franchising, or by taking a guesstimate. There are three obvious potential problems:
- Is the business being undervalued, leaving money on the table
- Is the business being overvalued, putting people off enquiring at all
- Will lenders agree to underwrite a proposal if affordability is questionable – leading to rejected applications and wasted time for everyone
We have a unique ability to consider the ‘franchise factor’ when valuing your business – a proper, professional valuation from franchising and financial experts:
- Gives you confidence about what is or is not achievable when selling your business
- Means they understand the wider benefits of being part of a franchise network and that these are taken into account in your valuation
- Bases the potential sale price on more than just previous financial performance or this year’s EBITDA
Find A Buyer for your franchise resale
Finding the right buyer for a franchise can be tricky; there’s a delicate balance between showing a business off and highlighting its strengths, and indicating the opportunities for a new owner to achieve a strong return on their investment.
You’ll also need an understanding of who your potential buyers are; where to find them; and how to present the business to attract enquiries.
Our specialist team will help with the following:
A bespoke sale prospectus, including copy and design
Online advert content
Listing on key resale portals (including our own)
Eshots to prospective buyers with relevant experience and the necessary capital
Social media marketing
Introductions to British Franchise Association-accredited suppliers (legal/financial)
Support negotiating the price and deal to heads of terms
Support driving to completion
Our brokers have sold many businesses over the years and provide the experienced hand to guide and support as much as is needed.
