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Franchise for Sale

Written by: Cynthia Gleeson

Article Overview: So, you’ve determined your franchise feasibility and now what? You’ve got a franchise for sale, but where do you go from here? Well, now comes the hardest part – oh, and did I mention the most fun part as well!

Franchise for Sale

So, you’ve determined your franchise feasibility and now what? You’ve got a franchise for sale, but where do you go from here? Well, now comes the hardest part – oh, and did I mention the most fun part as well!

When people decide to buy a franchise, it’s not because they love whatever product or service you’re selling. Sure, they might like that aspect of your business too. But, what they’re really buying into is a system. People buy franchises because they’re proven and they’re secure. They want something they will be able to replicate on their own with a higher chance of succeeding than if they started off on their own.

To that end, you need to give prospective franchisees something to work with. Not everyone who will be interested in getting into bed with you will be a seasoned pro. Some might be just as novice as you when it comes to setting up a franchise. You need to give them a clear structure and support system that will give them the confidence they need to come onboard and run a successful franchise.

What you need to do before you can put up your franchise for sale is develop a franchise plan. I know, I know, you thought you’d be finished with plans forever after you drew up your business plan! Sorry to break it to you, but yes, you need to do another one. After all, a franchise plan is quite different from your original business plan. In this plan, you will have to outline in detail all the steps you need to take to expand and your strategy for the next five years. It is here where you also need to establish the franchise fee, how much you will require franchisees to pay you in order to set up their own shop.

Don’t get too excited once you’ve finished your franchise plan – there’s more planning to go! You need a manual that describes your operations in detail, so that franchisees can adequately replicate your system. Following from that, training manuals and a system of support need to be set up in order to ensure quality control across your chain and help your franchises get off the ground running. Also, don’t forget the all important marketing plan. Create a website, a video, a brochure – anything. Prospective buyers won’t know how great your franchise is unless you tell them about it!

Once all your planning is done, you need to make sure your business is legally ready to be franchised. Have you drafted a franchise agreement and registered yourself with the appropriate state/provincial/federal powers that be? Is your trademark or brand name – the very thing that franchisees will be buying into – registered so that your intellectual property is protected?

Putting up a franchise for sale is no easy feat. It is scary both in concept – giving away a piece of your baby, your business – and in practice. But time again has proven that with the proper preparation, franchises have the power to expand rapidly at all of the local, national, and international scales.

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Re: Enticing Franchises - Top 9 List - All Franchise listed above are in millions of dollars. Do you have the list of Franchise in thousands
Re: Info for would be franchisers... - [quote="Sebastien":1d29sdv1]Like Franchise Times, Franchise Update is a very practical magazine. There is no blah blah, just straight facts that anyone in the franchise community can relate to. I just want to mention that all these magazines are NOT franchisee oriented. I mean these magazines are for franchise professionals. If you're looking to buy a franchise, you won't find much information in there. To answer your question, getting published in Franchise Times was fairly easy. I don't want to brag too much but I think I am known in the franchise industry. I was the marketing guy at Franchise.com for a few years before joining my new company, the World Franchising Network. So people know me and I have a very good relationship with Nancy Weingartner, the Managing Editor at Franchise Times. I was talking with her at the last Franchise Expo South in Miami and she mentioned she'd like me to be profiled. I was like "ok, sure!". I like this franchise executive profile thing in Franchise Times as it is rarely BS. People are usually really natural in there.[/quote:1d29sdv1] Thanks for the follow up Sebastien! And I can't say that I'm surprised that networking with the right people and managing your relationships with them properly are the keys to being published. I guess the old adage holds true of "it's not who you know, but who knows you" that's important.
how much for a franchise fee? - Dear Colleague There is no easy answer to this question. Things to consider: [list=] The sizeof the Franchise Clent base Expected Turnover Intellectual Property costs (recoup) Number of Franchises Number of employees Original Set up costs Franchise admin costs An example: A franchise that I was involved in setting was to a simple "lawn mowing/home repair" franchise. The Franchise included national/local advertising - preparation of client lists - general admin - central accounting etc The Franchise involved 300-500 clients - and an annual turnover of about $300,000 . The annual franchise fee was $30,000. Hope that this gives you some idea Take care Ian[/list]
Re: Franchise Surveys - Another good tool to researching a franchise is to speak with their existing franchisees. This contact information is included in most Franchise Disclosure Documents. In order to get a Franchise Disclosure Document or FDD as it is often referred to, you will have to complete a basic franchise application. The franchisor will then usually provide you with the FDD at that time. Included in that book of information is a list of the existing franchisees, the contract, the investment information etc... This information is required by Federal Law to be disclosed to your prior to making a purchase. So be sure to do your research and start with the Franchise Documents to get the initial information.
Re: Info for would be franchisers... - [quote="Sebastien":2gam0klq][quote="BuzzAroundBooks":2gam0klq]Like Franchise Times, Franchise Update is a very practical magazine. There is no blah blah, just straight facts that anyone in the franchise community can relate to.[/quote:2gam0klq][/quote:2gam0klq] That is really what I look for in any industry publication. We lead busy lives and when people fill their magazines with fluff, not only does it benefit no one, but it makes us truly appreciate those that don't. Thanks!


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