When you thought of buying a franchise to kick start the establishment of your name in the world, you were on the right path. You chose a brand and effectively used their reputation and good will to further their franchise and personalize the entire business with your distinguishing traits and drive. Either everything goes well or not at all. In any case, you may decide one day to sell your franchise. It could be because you need to move on to some other franchise or because your successful franchise can fetch big money through its sale. There are some things you need to prepare for and consider before this sale.
You have been on the other side of the table when you were looking for good franchises for sale
. You are aware of the difficulties faced by the newcomers in this business. You also know, by experience, the countless considerations that a franchise has to go through in order to trust their business in someone else’s hands. Now you are on the seller side of the table and must consider some things before you sell your franchise –
• You must have a clear idea of your goals and also have attainable and realistic aims before you sell the franchise. Your intentions for buying this franchise and of selling it- both should be contributive in your growth and success. You should have a back-up plan ready before you lose out on a good business deal. So plan ahead and do not jump to decisions.
• The franchisee you find now must fulfill all the qualities and qualifications that were the criteria for selecting.
• You must fulfill your own obligations first before handing over the hassles to someone else.
• You cannot think of using the brand of the franchise or their clients, resources, etc, to establish your own business. Now you are a separate entity and must detach yourself from that franchise completely.
• When you put up your franchise for sale
, the ultimate authority and the right to sell it will be with the franchisor.
• The franchisee agreement must be signed and the financial terms discussed and mutually agreed upon.
• You must cure all your outstanding obligations and defaults. Even a lawsuit that you may have filed against the franchisor will be waived. It is a fresh start for everyone involved and nobody should be a liability for anyone now.
• Even the franchisor could step in and buy back their own franchise on the exact same terms which were being offered to a bona fide buyer.
You must know what you are willing to do day-after-day for the professional part of your life. If you can identify and find your passion, then changing franchises would not be a confusing task. If you wish to start your own business, then too you must put your business franchise for sale
so that you stop using someone else’s name and strategies. You must develop your own policies, work culture and framework of the company by treating the franchise experience as a great and practical learning experience.