Selling a Florida Franchise
Although there is nowhere like Florida to live and run a business, there are many reasons that you may decide to sell your franchise. This could be due to personal concerns, market conditions, because it’s time to retire, or you may just be ready to move on.
Whatever the reason you want to sell your Florida Franchise, it’s a good idea to call us first so we can help you start preparing your strategy as early as possible to get you the highest possible selling price.
10 Steps to Selling your Florida Franchise
Contact Anchor Business Brokers
The road to achieving maximum selling price starts with the right plan. We listen to your current needs and help you craft a viable strategy to achieve your goals for the future. We can help you through every step of the selling process, making the process of selling as smooth and effortless as possible.
Value Your Franchise
The first step in building your strategy is finding out what your business is currently worth. The proven method of business valuation [How We Calculate the Value of Your Florida Business] that we use at Anchor Business Brokers, combined with our decades of experience, helps us find the optimal asking price for your business so that your business doesn’t sell for less than it is worth, or languish on the market indefinitely.
Contact Your Franchisor
Some franchisors can help with multiple aspects of the sale, others do not provide any assistance. All have requirements regarding transfer of ownership. You will need to know:
- If they provide any assistance with selling an existing franchise. Although most franchisors are focused on selling new franchises, some offer resale support.
- How to qualify as a franchise owner. The franchisor will need to approve the buyer before you will be able to sell your business. The sooner you know about the necessary requirements, the less time you will spend on a potential buyer that will not qualify.
- The transfer fee is for selling your existing franchise. Typical transfer fees range from $1,000 to $30,000.
Prepare Your Financials and Marketing
Before a potential purchaser can consider buying your Florida franchise, they will need to see 3 years of financial statements and a business summary. Your business summary should include:
- A description of what your franchise does and how it works
- A summary of your business history
- Specific details about your:
- A realistic asking price
Although it may be counter intuitive not to spread the word when you are looking for a buyer, If your employees, customers or competitors learn that your business is for sale, it may change the way that they look at your company, taking action that could create a downturn in sales and, ultimately, your selling price. We can help you get your business in front of potential buyers without alerting the general public.
Pursue Potential Buyers
If you were to pursue your potential buyer directly, they may think that you are desperate to sell. If they believe they have the upper hand, they may lower their offer, looking for a deal. As business brokers, we can intervene on your behalf, following up with buyers without changing their perception.
It is next to impossible to negotiate your own business without getting emotional. After all, you dedicated a great deal of time and effort into making it succeed and it is difficult to distance yourself.
We handle negotiations for you, patiently and dispassionately, keeping the business issues clearly in focus. We use objective values, such as the price of similar types of businesses in your area and current market trends, to help you arrive at a fair market price that everyone can agree on.
Notify Your Franchisor
Once you have reached an agreement, it is time to introduce your potential buyer to your franchisor for mutual approval. If your buyer has not yet reviewed the Franchise Disclosure Document (FDD), it should be reviewed now.
Pay Franchise Transfer Fee
Once the buyer’s funds have gone into escrow, it’s time to pay the transfer fee that you learned about in Step 3.
Close the Sale
We take care of everything from working with legal and financial professionals during the Due Diligence process through financing and closing, smoothing out any bumps that may come up along the way to make the process as easy and stress-free as possible for you.