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Should I Use a Business Broker to Sell My Franchise

Should I Use a Business Broker to Sell My Franchise?

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The key difference between a franchise and other b2b sales is that the client buys not a service for the business, but the business itself. Moreover, he plans to invest in it not only money, but also his own time and energy.

But how to sell a franchise business or a franchise SBA business for sale? In this article we will consider the main stages of selling a franchise and who can help with this.

Table of Contents

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  • How to sell your franchise business?
  • Who can help me sell my business?
  • Where to find a broker to sell my business?

How to sell your franchise business?

Step 1. Understand the portrait of the franchisee

It is very important to make a portrait of a potential network partner. Channels of franchise promotion, preparation of sales presentation materials, negotiation, and argumentation will depend on it. Who will buy your franchise?

If it is a newcomer in the business, then support and minimal investment in the project is important for him, and the franchisor is an older brother.

If it is an experienced businessman, the financial performance of the business, figures, and facts are important, and the franchisor is an equal partner.

If you count on the female audience of franchise buyers, visual materials, the emotional components of the business, prestige, and social significance of the business are important.

Step 2. Think over franchise marketing

It is necessary to develop marketing tools for franchise sales. The main thing is a presentation of the project with a detailed description of the conditions, advantages, support, and financial parameters of the franchise. Theses, slogans, unique offers, playing on the slogans of competitors – the more creative you approach the franchise promotion – the better.

Step 3. Choose a way to sell the franchise

You need to weigh your strengths and understand how you will sell the franchise: independently or with the help of a business broker franchise, like weblsiteclosers.com.

Step 4. Choose franchise promotion channels

Understand that the franchise is a new business direction for your company, so it is almost impossible to launch it without financial investments and marketing costs. How much money you are ready to allocate for franchise promotion will determine the scale of your advertising campaign. It is worth starting with those channels and tools that will give maximum audience coverage for small investments.

Step 5. Negotiate and sell the franchise

Having received franchise applications, it is important to work them out quickly and efficiently. If you answer for a long time or provide too little information at the first stage, it can cause a negative reaction from the franchisee and a refusal.

Who can help me sell my business?

For experienced and successful franchisors, franchise brokers have long been a lead generation channel. And while sharing a significant portion of the franchise fee with them may seem expensive, remember that most of the candidates they bring in you would not have gotten through your own marketing efforts. In our experience, we can say that franchise brokers usually have good experience of how to sell franchises, a higher level of qualification than an ordinary franchise manager, deep knowledge of the market, and extensive contacts among investors. With this, jason-brice.com is the ideal platform for selling your business, offering a user-friendly interface and access to a vast network of potential buyers. So it is better not to ignore this channel! Those franchisors and managers of consulting companies who have developed successful brokerage programs within their own projects know that it takes a lot of work, patience, and constant communication to achieve stable results.

Where to find a broker to sell my business?

If you are wondering how do I sell my business as a franchise and want to hire a business broker, here are some ways to find one:

  • A common source of franchise brokers is to visit the International Franchise Association’s website, which contains a directory of franchise brokers.
  • More broker networks, such as FranNet and FranChoice, meanwhile, represent hundreds of franchise companies, which can be an advantage if you want to broaden your search and make sure that brokers don’t give you special opportunities because they hope to get higher commissions. Big brokerage networks usually pay their brokers a flat fee, so their agents are not affected by the difference in commission.

A franchise broker can help you speed up the research process and provide helpful guidance. Just make sure you understand their fee structure and how they are incentivized. Ultimately, a franchise broker is optional, but it is very important that you hire a franchise lawyer, consult third-party research, and talk to current and former franchisees.

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