Franchising offers an opportunity for a business with proven products and services to expand and grow. It also gives the entrepreneur a higher chance of success. While business owners plan on how to go about various aspects of developing a business, exiting is rarely considered.
If you are to get good returns, you must give the business exit the attention it deserves early on and conduct business with the end in mind. So, just how do you conduct a dignified exit?
If you have settled on selling your business, the first step is to inform the franchisor. You could choose between selling your business through them or using a franchise broker, such as Transworld Business Advisors Australia. After that, take the following steps:
1. Get an appraisal.
Getting a professional business appraisal will help you price the franchise correctly. A good valuation could also allow the buyer to get funding from lenders.
2. Prepare the necessary documents.
Any interested buyer will want comprehensive information before committing. You should, therefore, prepare a detailed prospectus of sale. It should contain the history of the business, its description, property, staff, up to date financial accounts and the asking price.
3. Market the business.
Once all is set, it is now time to advertise the business through relevant channels.
- Inform your staff. Your staff is great pillars of the business. They deserve to know of the impending change of ownership through the right channels. Inform them what to expect before you commence marketing.
- Ensure confidentiality. Before disclosing any information, potential buyers should sign a non-disclosure agreement. It is only then that you can provide the prospectus and supporting documents.
- Train your successor. The purchaser will be required to attend the initial training course and pass the assessment before closing the sale. If this does not happen, the franchisor will not allow the buyer to take over.
Throughout the selling process, it is essential to maintain contact with professionals. These include the franchisor, bank manager, lawyer, franchise consultant, and the broker. With their help, careful planning, and minimal distractions of operations, the sale should be successful.