Restaurant franchise sale is a big issue for a lot of franchise owners. Many franchisors face the question of how they could sell their franchise. You could see this with the different types of franchises for sale on the resto franchise resale market.
You’re probably wondering how you can make a smart and profitable sale out of a restaurant franchise you no longer want to own or manage. Luckily, here is a step-by-step guide.
Steps to Selling Your Restaurant Franchise
Selling your franchise isn’t a simple matter. It can’t happen overnight. Follow these guidelines to make this transition to sell your restaurant franchise as smooth and successful as possible.
Contact your franchisor.
This step has two functions. It’s a basic courtesy to talk to your franchisor about your decision; after all, your activities are just part of their greater brand business. It’s also a way to gather information about the restaurant franchise selling process.
If you’re embarrassed or hesitant, you shouldn’t be. Many franchisors expect their franchises to be sold and bought off some times. A certain portion of their existing franchisees will want to sell at any point in time.
You should also offer some information in exchange. It’s important to know your own personal reasons for selling the restaurant franchise. Is it because you’re tired or feeling burned out? Is it because of financial reasons? All of these reasons are legitimate.
Lastly, be sure to note different kinds of information you need to get from your franchisor. You need to know what guidelines you should follow. Usually, you only need to follow the existing guidelines for new franchisees. And franchisors mostly want to have the right and the authority to still approve any new restaurant franchisee.
Assess your franchise and your options.
You can’t sell your franchise smartly if you don’t know what its value is. That’s not a sign of good preparation. You should be able to outline the worth of your restaurant franchise, whether or not you need to carry financing for a certain period. You also have to review your financial records and update them if necessary.
There are other legal considerations to prepare for. Consult your attorney on what structure for sale you should apply –asset or stock-based. Check with your landlord if there will be any problems with the property lease.
Prepare to enter the market.
The final set of things you need to do involves researching the market on restaurant franchises. Talk to a business broker and other expert, or refer to your accountant’s experience. You need to be able to establish a competitive price point.
You can look at many franchisor websites over the last few months. Many sites would link to their e-sales. Or you could go old school, and put out a newspaper ad.
In this day, the best strategy to enter the market is still to ask for your franchisors for help in marketing, and for online advertisements. Go to a website designed to market, like the site The Business Market.
Be proactive. Follow these steps, and be smart about your restaurant franchise sale.