How to prepare your franchise to sell it quickly
Congratulations! Your franchise resale is on the market! Now what? Are you hoping to complete your franchise resale soon and looking for tips on how to sell a franchise quickly? There are a number of actions that can be taken to help prepare your franchise to sell quickly.
Think of creating your Franchise Flippers listing and putting your franchise on the market as asking for a date (or multiple dates). Now, it’s time to get ready to meet! How do you do a quick business makeover so serious franchise resale buyers will like what they see? Here is our recommendation on how to sell a franchise:
Get your books in order and prepare financial reports.
If this is not something you have kept current, one of our business selling tips is that you start this process now. If you need to hire someone to help speed up the process, please do it. Most buyers will want to see 2-3 years of tax returns, P&L’s, and balance sheets. You may also want to prepare a list of inventory, equipment, furniture, and other assets that will transfer with the business. If you have these items ready to share with interested buyers, it will help accelerate the due diligence process.
Tidy up your location, equipment, and signage.
You may not be in a position to invest significant time or money into refurbishing your entire business, and that is OK. Think of this as getting a haircut, taking a shower, and shaving before a date. It’s not a huge investment of time or money, but it does make a difference! Don’t get overwhelmed, but do consider some inexpensive yet impactful improvements you can make that will assist in helping to sell your franchise quickly. For starters on how to sell a franchise, ask yourself the following:
- Is the signage and decor (inside and outside) fresh and orderly?
- Are uniforms and attire neat and new?
- Are company vehicles & equipment clean and in good working order?
- Has the operation been deep cleaned recently? Windows, carpets, desks, bathrooms? Ideally these items are always kept spotless, but it’s easy to overlook these things when you are busy running your business.
- Is there clutter (trinkets, files, extension cords, etc.) that has accumulated over the years that needs to be cleaned up or removed? What will buyers notice when they walk in?
DIG up your lease (if applicable)
Be familiar with renewal dates and assignment requirements. A buyer will eventually ask about your lease and want to review it.
Secret shop your business.
Another good tip on how to sell a franchise is to call, visit, and/or use your own service as if you were a customer. If you are part of the daily operations, have a friend or family member do this, then ask for their honest feedback. Look at your business as if you were about to buy it. See it through the eyes of your future buyer and address anything that needs improvement.
Evaluate how well you are following the franchise system
Get back on track where necessary. For example, if the franchisor requires business hours from 10am to 8pm and you are only operating from 10am to 6pm, adjust your hours to meet the franchisor requirements. Franchise resale buyers who see that you don’t follow the franchisor’s system may conclude you have cut corners in your operation, or they may question the credibility of the franchisor and their model.
Giving your franchise a quick makeover to help attract its next suitor will help you find your buyer more quickly, and it will preserve the value of your business enabling you to obtain a better sales price.
Making these relatively small investments now can be the difference in selling your business in a matter of months rather than years, and can even be the difference of tens of thousands of dollars, or more, at the closing table.
Would you like some additional help or advice about selling your franchise? Request a free consultation at franchiseflippers.com/customer-support/.