Buying and selling franchises is a little different to negotiating a standard business sale, but that should not put you off. Indeed, selling a franchise can sometimes be easier than selling a standard business, because there are certain systems and rules in place.
If you are selling a franchise you will no doubt already be familiar with these systems, as they would have applied when you purchased the business, and will be laid out in the franchise agreement you signed.
The obligations vary from business to business, but will most likely include the fact that the franchisor has first right to purchase the business. So, once the decision has been made to sell, your first port of call should be the franchisor.
If the franchisor does not wish to purchase the business, he or she may have the right to interview any potential buyers, or even approve the final buyer.
This is quite normal and should in no way be taken as a negative.
You can choose to market the business as you wish, but we would strongly recommend securing the services of a franchise solicitor to handle the paperwork/contract.
When you purchased your business, you should have been presented with a Franchise Code of Conduct and, in line with that Code, you must put your request to transfer [sell] the business in writing to the franchisor, who must not unreasonably deny this request.
Franchises In Australia
It all sounds very official, doesn't it? But, in fact, it is all very straightforward and happens every day somewhere in the world! Indeed, it's been a normal business practice in Australia since the 1970s.
According to the Franchising Australia 2010 survey, there are around 69,900 business format franchised units operating in Australia, contributing around $128 billion to the Australian economy!
Once you have your franchising paperwork in order, your business may be marketed like any other business, so it is important to make sure the business is in good order, your financials are up-to-date and staff have been informed.
Preparing Your Business For Sale
Depending on the type of franchise you have, you should ensure that all equipment is in good working order, premises are clean and well maintained, and any debts are either paid, or identified.
Under your franchise agreement, there will be certain criteria to be met, concerning the handing back of operations manuals and documentation, the transfer of business registrations to the new owner or back to the franchisor, and surrendering client lists, domain names, email addresses, and business phone numbers.
There may also be restrictions preventing you from trading as a competitor or using the franchise’s intellectual property after you have sold the business.
When it comes to marketing your franchise, you may be told that you have to use a business broker. Unless you signed something to that effect at the start, you are not obliged to use a broker. You may market your franchise yourself, with the help of a specialist organisation, such as Coast to Coast Media.
An independent, Australian family-owned business, Coast to Coast Media specialises in selling businesses and homes privately, WITHOUT CHARGING COMMISSION.
You get all the tools needed to successfully market your business - including graphic designers and professional copywriters - without ever paying commission.
Coast to Coast Media also has an excellent buyer match service, which will help you sell your business quickly, at the price you want.
Sell your commercial property or business privately without business brokers. We advertise your business for sale or real estate listing in our go-to website, national glossy Coast to Coast Magazine and major real estate websites reaching many motivated buyers. Call now to sell your business or property 1300 793 792 or email firstname.lastname@example.org.