Tweet

When Is the Best Time To Sell A Franchise Business?

Guest post by: ray haiber

Article Overview: Provides a list of some of the top reasons why you might want to consider selling your franchise business.

When Is the Best Time To Sell A Franchise Business?

As a professional business broker and franchise consultant I am often asked by small business owners about when is the right (or best) time to sell an existing franchise business. Like most things in life, timing can mean everything when selling a business. This includes choosing the right time to sell a business or franchise that will help you maximize your return on your investment and years of hard work. Here are a few helpful tips you might want consider if you are debating if its time to sell and cash out now.

Sell When Things Are Going Right:

Its sounds simple and logical right? Unfortunately it takes a lot of discipline and will power to pick the right time to make the decision to sell, especially when profits are up and the business is growing and running smoothly. Logically its makes good business sense to put a business on the market when sales are still heading North because who knows what unforeseen circumstances may lie ahead that could adversely affect your business. This includes personal issues like illness and divorce as well as broader economic factors like increased competition in your market niche or a major economic downturn like we are experiencing now. The bottom line is you are more than likely going to get the best possible price and terms for your franchise business when you can demonstrate to a potential buyer that business has never been better.



It’s Just Not Fun Anymore:

I am a firm believer that individuals should start businesses and franchises that they truly believe they will enjoy getting up in the morning to work every day of the year. Ok, most days of the year. Because let’s face it, starting any small business today is going to be challenging so hopefully you did start a business model or franchise concept you enjoy working with. With that in mind, if you are at the point where you find you just can’t seem to muster the same enthusiasm or passion for running your business maybe its time to consider moving on to the next venture. There is no reason to feel like a failure or guilty if you come to this realization. It’s quite natural for many entrepreneurs to get bored and restless after several years of running the same business. The important point to keep in mind is not to let your lack of enthusiasm for the business drag on to the point where it starts to have a negative effect on the business- including growth and sales.

Owner Burnout Syndrome:



As a professional business broker I can’t tell you how many calls I get on Monday mornings or Friday afternoon from business owners who want to sell because they are completely “burnt out” and just don’t want to do it anymore. That’s fine and completely understandable as running a small business can sometimes be all consuming endeavor that can wear and break even the most rugged and seasoned entrepreneur down. The point I try to impress on my clients is to be conscious of the onset and potential negative effects of the “burn out” syndrome and not to wait to the point where it overwhelms you and mitigates your chances of getting the best possible price for your business.

Summary:

Please keep in mind that all prospective business buyers should thoroughly investigate any franchise opportunity or business, obtain all appropriate disclosure documents available, and seek expert consultation prior to making any investment decisions.

Related Articles
  Reselling Your Franchise
  How do I sell My Restaurant Franchise?
  Master Franchises Explained
  Franchise Agreements The Basics
  Franchising with all its Success
  Question Your Franchise Decision Making
  Selling Your Franchise: What Are Your Rights?
  About 60% of all franchise opportunities have less than 50 units.
  Why Use a Franchise Consultant?
  Did you know: NIIT Franchise was present in Malaysia in 1997?
  What is Franchising
  Looking for Franchise Finance? You May Be Sitting On It Already
  Selling a Franchise How to
  Things to Look for In a Coffee Franchise
  What to do before Selecting a Franchise System
  Do You Have the Right Stuff to be a Franchise Owner
  Franchises Versus Licensed Business Opportunities
  "Untouchables" and "Discussables"
  Franchise Resales
  Factors That Affect a Good Franchise Site Location

Article Tags: franchise opportunities, franchises, sell a franchise



Related Forum Posts
My entry - 1. The Best Business Books Ever: The 100 Most Influential Business Books You'll Never Have Time to Read - this is a fascinating book about the history of Business theory, and I'd recommend it to anybody. 2. The Big Book of Small Business: You Don't Have to Run Your Business by the Seat of Your Pants, by Tom Gegax. Ditto. 3. PADI: The Business of Diving Book Okay, so this book won't be of use to anyone who doesn't want to start a scuba store, but I did, and this book was of course invaluable to me in reaching that goal.
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]
Fed rate cuts . . . - So just what do the newest Fed rate cuts mean to Franchise and Business Opportunity investing? Is it immediately felt? What timeframe do you think, or rather, where are we in terms of new vs. existing business investment? A similar question can be composed for the economic stimulus checks - will they a have any effect if consumers spend a little $$


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

Work Life Balance: Adding White Space

••••••>SEO Tip Of The Day: HTML Validation

Build Corporate Credit for Your Small Business

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.