People want to know exactly how to sell a franchise. The main goal is to prove that running your company is more beneficial than risky. Here are several strategies to consider as you are selling a franchise.
Guarantee the Profits
Prove to buyers that there is a guaranteed stream of profits. Most people buy franchises to reduce the risks of starting a brand-new company. They need proof that they will succeed and earn a long-term income. Show at least one year of monthly earnings from your company, which includes the number of sales and the expenditures. You don’t need big profits to sell a franchise successfully either as long as you show some financial stability.
Show Room for Improvements
Show buyers that your franchise has room for expansion. A business that already has dozens of locations could have the potential for thousands more. A statewide franchise could become global in a few years.
Many buyers are aspiring entrepreneurs who want to start their own businesses. Owning a franchise gives them the profits and experience that they need to start. So, they are more attracted to business ideas that they can improve upon and make more successful.
Give Personal Advice
Businesspeople feel more reassured when they hear success stories. Advise them about the tools and techniques that you have used to run the business. Tell them about unique experiences that you’ve faced and how they can handle common problems. Buyers need to be reassured that they will not fail in this new business venture.
Maintain the Workforce
Include your franchise with the same team of employees. Along with stable profits, ensure that the workforce is stable and prepared to work immediately. New franchise owners buyers should worry less about finding, hiring and training new employees. They should focus more on learning how to adapt to their new roles and maintain the profits.
Mention the Assets
In addition to the company’s profits, mention all of the tangible assets that you own, including supplies, inventory, furniture and store equipment. List the current values along with estimated depreciation rates for the next few years. The most sensible buyers know that equipment could break down and some inventory could get lost or stolen. They want to know how much it will cost to repair or replace property over time.
Highlight the Risks
A lot of sellers don’t want to mention the risks before they sell. Buyers are more willing to work with honest people who won’t hide the risks. Some franchises are known to have gone out of business sooner than expected. Another franchise that moves in next door may cause your business to lose money. However, show that in most cases, the benefits are greater than the risks.
Think about how you would want to be approached by someone who is selling a franchise. Knowing which buyers to contact is important, but it’s more important to know how to sell a franchise. Promote a plan that gets people as interested in your business as possible.