6 Important Questions to Ask When Thinking About Selling Your Franchise Business
If you’re thinking about selling your franchise business, you want to be sure you’re considering all angles before taking the plunge. When it comes to the selling process, there are many important things to consider and questions to ask. Keep reading to see the important questions you should ask before you decide if selling your franchise business is the right choice for you.
- Are there other options available aside from selling? You want to be sure you’re 100% ready to sell your business. If you’re having hesitations, think about other options you might have available. This could include things like hiring a new team, transitioning your business to the next generation, or merging with another franchise.
- Do you have qualified representation? Once you’ve decided you definitely want to sell your business, the next step is to ensure you have qualified, experienced representation. Working with a friend or family member might sound nice, but sometimes doing so can damage a relationship – or damage the business deal itself. Instead, look for someone who has knowledge of franchises and business sales, as well as the trustworthiness to get the job done correctly.
- Have you told multiple parties? When you do decide to sell your franchise business, there are other people to consider. For example, you need to think about your current staff, customers or clients, vendors, and more. Selling your business affects all of these individuals. When you decide to sell, keep it confidential or on a need-to-know basis until you’re absolutely sure it’s happening and until you’re ready to announce it publicly.
- Have you thought about potential buyer apprehensions? Any buyer is going to have apprehensions and questions about buying a business. That’s why it’s important to make the buyer feel comfortable and informed. Answer their questions, address any concerns, and be honest about the business and process. Doing so will make the process a more efficient and positive experience for everyone involved.
- Are you ready to sell when the timing is right? Another question you need to ask is if you’ll be ready to sell if the timing is right. You don’t want to wait too long to sell or get greedy and wait for something else – by doing so, you could miss out on a great deal or opportunity. Be ready to sell when your financials look great.
- Is your documentation ready? Before you start talking to potential buyers, prepare all of your sales materials and documentation. That way, you’ll be ready to present buyers with a package right away. The package should provide a general overview of your franchise business, including financials, growth strategies, and other useful information. Aside from showing buyers you’re serious about selling, this will also help them feel more knowledgeable right away. In turn, this will help them feel more comfortable about the possibility of buying your business.
If you’re ready to sell your franchise business or are interested in learning more about the process, contact our business brokers at Franchise Sales. We’re here to help make the selling process as efficient and rewarding as possible.