As a franchisee, when you first buy into a franchise, you're often filled with excitement about your new venture and the opportunity to build wealth for you and your family. After all, planning for the future is one of the primary reasons prospective owners buy into a franchised business in the first place. That said, things can change. Whether it's time for retirement after years of running your business or you are ready to start a whole new chapter in your life, it's important to buy into a system that is committed to helping you through the transition process.
Top franchises, including Valpak, should have in-depth resale assistance programs in place to guide its dedicated franchisees through this process. The decision to transition can be a challenging one. So, whether you're an emerging or established brand looking to establish your own exit strategy program or a franchisee researching tips on how to leave your franchise for whatever you have planned next, be sure to review the following steps.
BE PREPARED TO ANSWER QUESTIONS
"Why are you selling your franchise?" This is one of the first and most common questions you'll receive from a potential buyer. There are many reasons why people are ready to sell their business: retirement, a change in life has happened or you are just ready to move onto the next business. Regardless of the reason, you'll want to have your story put together and ready to share with potential buyers. It may also be tempting to let your personal feelings get in the way if you are no longer happy within the franchise system. Remember, you are selling your business and just as the product or service you sell through your business, how you present that will determine the value and overall perception buyers will have of your business.
DETERMINING THE PRICE AND FINDING A BUYER
At Valpak, one of the most often questions asked is: "What is the value of my business?" Many franchise organizations will not offer a business valuation tool, so it is incumbent upon you to determine a fair market value for your franchise. When you establish a sale price for your business, we recommend you take your time and determine the "right price." Setting too high of a price may drive away qualified prospects. You may also opt to seek the services of an independent business appraiser to help you understand how to value your business. In addition, there are numerous sites that offer business valuation services with differing valuation...