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	Franchise Resales When a Franchisee decides to sell
With more and more franchise companies becoming established in the UK, franchise re-sales are now common in the industry. This is where a franchisee, the incumbent business owner, sells an existing franchise to a buyer. This transition if correctly managed, the buyer and seller all benefit greatly. In the first instance franchisees wanting to sell their business must decide how to go about this process. One option is to try and do it themselves. This method is very time consuming and could be extremely volatile due to confidentiality issues and restrictions, that could detract from the sellers’ day to day management of the business, which in turn could have a detrimental effect on the whole business and its eventual marketability. The second option is to approach and enlist the help of the Master Franchisor. A good option if the franchisor is aware of the fundamental dynamics and differences between selling an initial franchise and re-selling a franchise as a going concern. The third and by far the most productive and successful option would be to use a business broker that specialises in franchise re-sales. A specialist broker will have the necessary skills and industry knowledge to utilise and appraise Key Industry Indicators to promote the business in the most advantageous format to achieve the correct market value. A bespoke package will be put in place for the vendor that will procure serious buyers through targeted advertising or through a established network of purchasers. The selected purchaser will undergo thorough vetting procedures, due diligence and subject to status ascertain and secure their ability and intentions to be in a position to conclude the said purchase to an achievable, suitable and beneficial outcome for both parties. The buyers will benefit from an established franchise as statistically it has shown that 95% of franchisees succeed beyond the 5 year fail barrier. With a purchase of a successful franchise the new owner is gaining all the benefits of a long term trading record, known market trends, customer base and goodwill. However, the important and subsequent vulnerable time for any new business owner is during the inevitable learning curve. This exposure is severely negated when a policy of a thorough and interactive handing over and partnership process is strictly adhered to. This partnership ethos is in the best interests of all parties especially if the vendor has a vested interest in the continued success of the franchise and is a fundamental dynamic in the success for the two parties concerned and usually overlooked by the other two mentioned options. If you are a business owner and are motivated to sell or conversely seek to purchase a business please feel free to ring us for a confidential discussion on how Sunbelt can help you achieve your exit or access business strategy.

For further information on this subject, you can contact Jason Curl using the contact form below.

Franchise Re-sales - When a Franchisee decides to sell, UK, Jason Curl - Franchise Resources