The process will help you ensure that you have all the information the potential buyer needs and hopefully allow you to demonstrate positive trends by maintaining comprehensive data. Consider replenishing your accounts (with the exception of personal historical costs for you) to show what could have been achieved, and also develop a financial forecast to show potential buyers the potential of the business that, in turn, should help maximize your “sales capacity.” Selling a franchise business can take a long time and you should look for a buyer at least a few years before you want to go down and be ready to leave earlier than expected if a suitable buyer can be found. If you are planning your exit on time, make sure you are ready, and it is important that you identify any vulnerabilities that the buyer might use against you during the sale process. The goal is not to make cosmetic changes, but a real operational improvement in order to maximize the value of your business. My question is: how can I appreciate the resale of the franchise? I have been to a number of business transfer agents and they say I can only evaluate resale on the basis of net profits and not on a multiple of net profit plus initial deductible fees. It`s true? If that`s right, then a potential new franchisee could buy a franchise for less than one new one with no revenue flow, which doesn`t make sense! Do I miss something? I made a technical loss of 10K after drawings/ editions, etc.? Most mature franchised organizations expect them to generate franchise revenues each year, many of which reach about 10% of network power. So if a franchisor has 60 franchisees, they could expect to have about 6 at the time. With six or seven franchisor networks in the UK, it is easy to reach a fairly high number of potential sales in a single sector each year. If they were not so careful, they would soon end up with a network of below-average franchisees, many of whom would have acquired their franchise from an existing franchisee. It is therefore appropriate that all potential franchisees, regardless of how they have become potential franchisees (including candidates submitted by brokers, consultants, etc.) to franchisees, meet the franchisor`s criteria for franchisees and pass the same rigorous tests.
Founded more than 20 years ago, “whichfranchise resales” is the consultation site for anyone interested in an existing franchise for sale. Every week, hundreds of potential franchisees visit to learn more about buying a franchise and check what is currently on sale in their area.