Over the years, we’ve had many clients who faced unexpected and, in some cases, devastating life events: divorce, health crises, the death of a partner or spouse, lawsuits, and more. They call us because they need to sell their franchise business right away, and they’re often feeling lost and disoriented.

We hope it never happens to you. But if it does, we want you to rest easier knowing you’ve prepared in advance.

Divorce is one of the most common reasons a franchisee will have to sell a business under duress. In fact, studies show that divorce among entrepreneurs ranges between 43 and 48 percent. The stress of running a business together, along with financial concerns, damages many marriages. Most couples will opt to sell the business and make a clean break, rather than try to operate a small business (in possibly a very small space) during a separation or contentious divorce.

We have also dealt with a couple of owners who became seriously ill. They needed to focus on their health, and had to sell the franchise as quickly as possible. Others needed the proceeds to care for a family member or to pay off sudden and unexpected obligations (such as a lawsuit or other legal matter.)

Whatever the reason an owner is forced to sell sooner than they’d planned, the process is often painful and chaotic. Dealing with the diligence and negotiation process is challenging under the best of circumstances, but managing a sale while undergoing medical treatment or dealing with legal issues can be exhausting.

That’s why we recommend that franchisees connect with an experienced business broker long before they have any intention of selling. A broker can help you understand the true value of your business and give you advice on how competitive your business is in the current market. They can explain how the process of selling your franchise works and what you can change and improve to make your company more attractive to potential buyers.

Here's how you can prepare in advance so a sale under difficult circumstances is less overwhelming.

Talk through “what ifs” with your spouse or partner. Chances are, if you have a partner in the business, you also have a written agreement that covers what happens when the unexpected happens. But most couples don’t feel comfortable talking about the possibility of divorce or serious illness. But if you have the conversation while you’re both healthy and happy, you can plan and talk through your options without the emotional turmoil you’ll be embroiled in if it happens. (This is also why many people plan and pay for their own funerals in advance.)

Make sure your business is well-organized and running efficiently. If you were to become ill tomorrow, could your staff run the operation without your full-time involvement? Or would the place fall apart? The answer matters both to your own well-being and to a buyer. If you have consistent procedures in place and staff who are well-trained and reliable, your business will attract more buyers and be able to make money while you deal with the emergency.

If you’re not great about keeping up with your records, the time to make a change is now. The stress of getting organized and catching up on months of paperwork will be unbearable during a crisis. Take some time each day to get caught up and get organized. Clean books will help the deal close faster and be less stressful for both you and your buyer. Don’t forget that your spouse or employees may have to respond to a buyer’s inquiries if you’re unable to; being organized will make their lives much easier.

Find a reliable partner for your business sale. We always believe that a broker provides value for a seller, but their help is even more essential if you’re selling during a crisis. You’ll need their objective and impartial advice, and you’ll need them to help you make good decisions when you might be too emotional to think clearly. Having a compassionate human on your side who also stays focused on the bottom line is just what you need when everything in your life has turned upside down.

To talk through your specific situation, we welcome your call. Or you can use our confidential online form to calculate what your business is worth now.