{"id":10286,"date":"2021-08-02T18:04:29","date_gmt":"2021-08-02T17:04:29","guid":{"rendered":"https:\/\/www.franchiselocal.co.uk\/news\/?p=10286"},"modified":"2022-01-27T11:04:42","modified_gmt":"2022-01-27T11:04:42","slug":"can-you-sell-a-franchise-10-steps-to-success","status":"publish","type":"post","link":"https:\/\/www.franchiselocal.co.uk\/news\/can-you-sell-a-franchise-10-steps-to-success\/","title":{"rendered":"Selling a Franchise: 10 Steps to Success"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_89 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #101010;color:#101010\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #101010;color:#101010\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/can-you-sell-a-franchise-10-steps-to-success\/#step-to-success-1-%e2%80%93-check-the-fine-print\" >Step to success 1 &#8211; Check the fine print<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/can-you-sell-a-franchise-10-steps-to-success\/#step-to-success-2-%e2%80%93-a-word-to-the-whys\" >Step to success 2 &#8211; A word to the whys<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/can-you-sell-a-franchise-10-steps-to-success\/#step-to-success-3-%e2%80%93-the-numbers-game\" >Step to success 3 &#8211; The numbers game<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/can-you-sell-a-franchise-10-steps-to-success\/#step-to-success-4-%e2%80%93-be-good-on-paper\" >Step to success 4 &#8211; Be good on paper<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/can-you-sell-a-franchise-10-steps-to-success\/#step-to-success-5-%e2%80%93-keep-your-franchisor-in-the-loop\" >Step to success 5 &#8211; Keep your franchisor in the loop<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/can-you-sell-a-franchise-10-steps-to-success\/#step-to-success-6-%e2%80%93-people-power\" >Step to success 6 &#8211; People power<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/can-you-sell-a-franchise-10-steps-to-success\/#step-to-success-7-%e2%80%93-go-pro\" >Step to success 7 &#8211; Go pro<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/can-you-sell-a-franchise-10-steps-to-success\/#step-to-success-8-%e2%80%93-exit-stage-right\" >Step to success 8 &#8211; Exit stage right<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/can-you-sell-a-franchise-10-steps-to-success\/#step-to-success-9-%e2%80%93-a-good-buyer\" >Step to success 9 &#8211; A good buyer<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/can-you-sell-a-franchise-10-steps-to-success\/#step-to-success-10-%e2%80%93-eyes-on-the-prize\" >Step to success 10 &#8211; Eyes on the prize<\/a><\/li><\/ul><\/nav><\/div>\n<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 4<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span><p>Owning and running a <a href=\"https:\/\/www.franchiselocal.co.uk\/franchising\/\">franchise business<\/a> can be great fun and, with a bit of work, extremely lucrative.<\/p>\n<p>While this is very much the case, there may come a time when you decide that you\u2019re ready for a new challenge, but what happens to your franchise business in this event?<\/p>\n<p>You might, of course, decide to allow your employees to continue running your business for you. However, this does present a solution, and you\u2019ll probably still need to be involved in the franchise to a certain extent.<\/p>\n<p>You can also choose just to let your contract run its course and then elect not to renew, in which case the business is returned to the franchisor, though this may not be ideal after all of your hard work and investment.<\/p>\n<p>One of the most common questions franchisors are asked is, Can I sell a franchise business?<\/p>\n<p>The answer to this is yes and, in this article, we&#8217;ll take you through the 10 steps to successfully selling your franchise:<\/p>\n<h3><span class=\"ez-toc-section\" id=\"step-to-success-1-%e2%80%93-check-the-fine-print\"><\/span>Step to success 1 &#8211; Check the fine print<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Although it is possible to sell a franchise, your first task is to check your franchise agreement to ensure that there are no sneaky little clauses that dictate how and when you can sell.<\/p>\n<p>In most cases, the <a href=\"https:\/\/www.franchiselocal.co.uk\/news\/the-difference-between-a-franchisor-and-franchisee\/\">franchisor<\/a> won\u2019t oppose a sale as they naturally prefer to have franchisees who are fully invested in the business but, it\u2019s always a good idea to know exactly what\u2019s in your agreement from the word go.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"step-to-success-2-%e2%80%93-a-word-to-the-whys\"><\/span>Step to success 2 &#8211; A word to the whys<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Before steaming ahead with selling your franchise business, it\u2019s time to take a close look at why you want to do so.<\/p>\n<p>The most common reasons for selling a franchise are:<\/p>\n<ul>\n<li>The business is not making the expected revenue<\/li>\n<li>The running of the business is more demanding than expected<\/li>\n<li>The franchisee is looking for a new project or business<\/li>\n<li>The franchisee bought the franchise with the specific intention of selling it<\/li>\n<\/ul>\n<p>Examining your reasons for selling the franchise will help you figure out if it\u2019s the right decision and if so, it will help you determine a timeframe for the sale.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"step-to-success-3-%e2%80%93-the-numbers-game\"><\/span>Step to success 3 &#8211; The numbers game<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Before you even consider selling your franchise business, you\u2019re going to need to know what it\u2019s worth. Many different factors go into the mix here.<\/p>\n<p>You will almost certainly be best served by finding a professional to <a href=\"https:\/\/www.franchiselocal.co.uk\/news\/how-to-unlock-your-business-valuation-through-franchising\/\">evaluate the business<\/a> within the current market accurately.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"step-to-success-4-%e2%80%93-be-good-on-paper\"><\/span>Step to success 4 &#8211; Be good on paper<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>You can\u2019t possibly hope to make your business attractive to a buyer if you don\u2019t have all your paperwork in order. Take the time to make sure that you have all of your documentation ready to present to a buyer and, your checklist should include:<\/p>\n<ul>\n<li>Clear records of your business\u2019s performance for the last two or three years<\/li>\n<li>Employee records<\/li>\n<li>Accounts<\/li>\n<li>Franchise agreement<\/li>\n<li>Contractual obligations<\/li>\n<li>Lease agreements for any hired equipment or premises<\/li>\n<\/ul>\n<p>Having all of this important paperwork to hand can significantly speed up a sale as well as helping the buyer to make the decision in the first place.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"step-to-success-5-%e2%80%93-keep-your-franchisor-in-the-loop\"><\/span>Step to success 5 &#8211; Keep your franchisor in the loop<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Some <a href=\"https:\/\/www.franchiselocal.co.uk\/news\/the-difference-between-a-franchisor-and-franchisee\/\">franchisees<\/a> choose to be secretive about their selling plans for fear of being penalised by the franchisor. Although this can happen, it\u2019s rare.<\/p>\n<p>As we\u2019ve mentioned earlier, most franchisors will be extremely supportive of your decision and will offer advice and tips to make your sale go smoothly. For this reason, it\u2019s a good idea to inform your franchisor once you\u2019ve decided to sell and to keep them updated on your progress.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-10288\" title=\"people power\" src=\"https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2021\/08\/people-power.jpg\" alt=\"people power\" width=\"1200\" height=\"611\" srcset=\"https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2021\/08\/people-power.jpg 1200w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2021\/08\/people-power-300x153.jpg 300w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2021\/08\/people-power-1024x521.jpg 1024w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2021\/08\/people-power-768x391.jpg 768w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2021\/08\/people-power-150x76.jpg 150w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2021\/08\/people-power-600x306.jpg 600w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2021\/08\/people-power-696x354.jpg 696w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2021\/08\/people-power-1068x544.jpg 1068w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2021\/08\/people-power-825x420.jpg 825w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2021\/08\/people-power-20x10.jpg 20w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/><\/p>\n<h3><span class=\"ez-toc-section\" id=\"step-to-success-6-%e2%80%93-people-power\"><\/span>Step to success 6 &#8211; People power<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Once you\u2019ve decided to sell your franchise business, you\u2019ll no doubt have a lot on your plate and, while selling the business is a personal decision, it\u2019s one that affects other people &#8211; namely, your employees.<\/p>\n<p>When beginning the process of selling your franchise, be sure to let your employees know what is happening and to assure them, where possible, that their jobs will remain safe. Keeping your employees informed will eliminate gossip within your business and keep them on your side as the process evolves.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"step-to-success-7-%e2%80%93-go-pro\"><\/span>Step to success 7 &#8211; Go pro<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Even though you\u2019ve been running your franchise business for a while and have a pretty good understanding of the ins and outs of the business, you may not necessarily have experience in selling a business.<\/p>\n<p>In this instance, my top tip would be to get yourself a specialist franchise solicitor as they will advise you on the best way to go about the sale and help you navigate what can be quite a complex and time-consuming process. You may also want to enlist an accountant if you don\u2019t already have one to ensure that all of your financial ducks are in a row as you go through the selling process.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-10289\" title=\"exit strategy\" src=\"https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2021\/08\/exit-strategy.jpg\" alt=\"exit strategy\" width=\"1200\" height=\"739\" srcset=\"https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2021\/08\/exit-strategy.jpg 1200w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2021\/08\/exit-strategy-300x185.jpg 300w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2021\/08\/exit-strategy-1024x631.jpg 1024w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2021\/08\/exit-strategy-768x473.jpg 768w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2021\/08\/exit-strategy-150x92.jpg 150w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2021\/08\/exit-strategy-600x370.jpg 600w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2021\/08\/exit-strategy-696x429.jpg 696w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2021\/08\/exit-strategy-1068x658.jpg 1068w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2021\/08\/exit-strategy-682x420.jpg 682w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2021\/08\/exit-strategy-356x220.jpg 356w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2021\/08\/exit-strategy-20x12.jpg 20w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/><\/p>\n<h3><span class=\"ez-toc-section\" id=\"step-to-success-8-%e2%80%93-exit-stage-right\"><\/span>Step to success 8 &#8211; Exit stage right<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Now that you\u2019re motoring toward selling your franchise, it\u2019s time to create your exit strategy. Your strategy will include:<\/p>\n<ul>\n<li>How you intend to find a buyer<\/li>\n<li>How much you will accept for your business<\/li>\n<li>The approximate date on which you wish the sale to be complete<\/li>\n<li>Any special clauses, for example, retention of employees after the sale<\/li>\n<\/ul>\n<p>This exit strategy will add structure to your sale and help it go as smoothly as possible within a set deadline.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"step-to-success-9-%e2%80%93-a-good-buyer\"><\/span>Step to success 9 &#8211; A good buyer<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Selling your franchise business does, of course, rely on finding a buyer for it and, you can do this in one of three ways:<\/p>\n<p><strong>Through your franchisor<\/strong> &#8211; It may be that your franchisor already has one or more potential buyers in your area on their books. In this case, you need to liaise closely with your franchisor to open a dialogue with the buyer to see if they\u2019re the right fit for your business.<\/p>\n<p><strong>Through your own employees<\/strong> &#8211; You might find that your new buyer is, quite literally, right under your nose in the form of an employee. We\u2019ve already mentioned the importance of letting your staff know that you\u2019re considering selling the franchise. This is a good time to put out feelers to see if any of your employees would like to take over the business for themselves.<\/p>\n<p><strong>Through an advertising campaign<\/strong> &#8211; If neither of the above options are viable, then you\u2019ll need to advertise your business for sale. This can be done through local newspapers, social media, online portals and trade magazines.<\/p>\n<p>Once you have a shortlist of potential buyers, it\u2019s important to meet with them to see if they\u2019re a good fit. Additionally, your franchisor will also usually want to meet with them and, when it comes to making a final decision, this will usually be down to the franchisor.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"step-to-success-10-%e2%80%93-eyes-on-the-prize\"><\/span>Step to success 10 &#8211; Eyes on the prize<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>When selling your franchise business, you\u2019ll be keeping a lot of balls in the air and, it\u2019s important that you focus not just on the sale but also on the continued smooth running of the business. The last thing you want is for a sale to fall through because you\u2019ve taken your eye off the ball and your business has started to decline.<\/p>\n<h5>Conclusion<\/h5>\n<p>Selling your franchise business is a great way to boost your bank account and leave you free to pursue other options. Just make sure that you tick all the right boxes along the way and, where necessary, seek professional help to help you navigate any bumps in the road.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Owning and running a franchise business can be great fun and, with a bit of work, extremely lucrative. While this is very much the case, there may come a time when you decide that you\u2019re ready for a new challenge, but what happens to your franchise business in this event? You might, of course, decide [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":10287,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[29,1467],"tags":[],"class_list":["post-10286","post","type-post","status-publish","format-standard","has-post-thumbnail","category-tips-advice","category-franchise-information"],"acf":[],"jetpack_featured_media_url":"https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2021\/08\/Can-you-sell-a-franchise.jpg","_links":{"self":[{"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/posts\/10286","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/comments?post=10286"}],"version-history":[{"count":0,"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/posts\/10286\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/media\/10287"}],"wp:attachment":[{"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/media?parent=10286"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/categories?post=10286"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/tags?post=10286"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}