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.
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It’s one of the first questions owners ask when they decide to list their company for sale: how long will it take to sell? The answer, as always for important questions, is “it depends.” Some of the factors that make for a quick close are out of your control, but a good portion of what matters is very much in your control. Here’s how you can help a deal move quickly.
First and foremost, make sure your files, tax returns, and other financial records are in order before you offer your franchise for sale. Having everything cleaned up and well-organized will make the diligence process much quicker and easier for everyone involved.
When you’re ready to sell your business, the first question you’ll be asked by everyone you tell is “why are you selling?” Here’s why it’s important to think about your answer carefully.
As an owner, you play an important part in the marketing process. Whether you’re casually mentioning your plans to other franchisees or friends, or reaching out to a business broker for the first time, your reason for selling will be the first impression anyone forms of your business. Your reasons are probably very personal and specific, but how you phrase them to others gives them an idea, not just of where you stand, but also where the business stands.
We’ve been seeing articles about inflation and rising interest rates, and we’re following them carefully since they affect the market for selling businesses. High-interest rates make it harder for some buyers to get the financing they need; they’re looking for companies they can get at a discount, or waiting for the interest rates to lower before they get serious about purchasing a company.
Click Here to learn more.As an Allstate agency owner, you have plenty of business advantages. You own equity in the business you build, earn repeat revenue from policy renewals, and have the potential of unlimited earnings.
Allstate is one of the most recognized and respected names in the industry, so you have plenty of credibility, and Allstate doesn’t charge fees like other companies. There’s even a buyout clause for owners who are ready to retire or leave the industry. Allstate will buy you out at 1.5 times the worth of your annual book of business commissions. But is that the best deal for an agency owner when you’re ready to sell?
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It’s a common observation among business brokers: “they think they’re selling a business, but they're selling a job.” Which do you have?
Many people dream of owning their own business but find that they’re working harder than ever for less pay than they did as employees. Clay Clark, writing for Forbes online, puts it this way: “The desire [to be a business owner] wears off, however, when new entrepreneurs realize they are now self-employed and have to choose what 80 hours per week they want to work instead of being told what 40 hours per week they have to work. And without learning best practices for building, organizing and managing a team, they will find themselves in the self-employment “rat race.’”
If you’re a franchise owner, this is a great time to consider selling your business. Economic conditions are right and the cost of borrowing money is still low so that means buyers are plentiful. However, is the time right for you personally? The answer depends on several factors.
Click Here to learn more.It can be intimidating to sell a business. Here's an opportunity to learn from one of your peers how she successfully navigated the transaction. She shares what went right and what decisions she would have made differently given a second opportunity.
Click Here to learn more.We talk to hundreds of potential franchise buyers every year about the process of purchasing a business. One of the most challenging conversations we have is about finding the right lender. The challenge comes in two versions. “I have been banking with my hometown banker for over 20 years. He knows me, and he’ll take care of me. I trust him.” Or this version: “I bank with one of the biggest and most prestigious banks in the country. I’m sure their size will make the process faster and easier.”
Click Here to learn more.One is the economy. It’s been giving off mixed signals for more than a year after we’ve technically recovered from the pandemic. The stock market is flat; inflation is still rampant. Your costs have gone up, which means your cash flow is tighter. That’s eroding the value of your business bit by bit.
When we get ready to help an owner sell their franchise, an important part of our job is to find qualified buyers. That includes a category of buyer some owners might overlook: their own employees.
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If you’re considering expanding from a single franchise unit to multiple units, you’re making a smart move. And it may be easier than you think. Here’s what you should know about moving to MCO (Multiple Center Operator) status.
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If 2022 is your year to sell your franchise, you’re in luck. FOMO (Fear of Missing Out) has finally hit the business market; we’re seeing multiple buyers interested in every new listing. Many are very motivated because they’ve missed out on previous deals.
An experienced business broker can help you assemble a pool of qualified buyers and help you make the best deal for your company’s sale.
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Seller financing is something we bring up with every deal we broker. We’re not surprised when the answer is “no;” almost every owner declines at first. After all, that’s why they’re selling – to get out of the business. But most change their minds when they hear how they can benefit.
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An experienced business broker has two jobs. The first is to help you determine a price for your business that will net you the most value. The second is to find qualified buyers and structure the best deal possible.
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A fitness business franchisee of a national franchised fitness center accepted an offer from a qualified buyer. While excited to be stepping away from his business as he had other business opportunities he wanted to pursue, he made an interesting terrible decision before the business sale closed escrow.
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If you’re a franchise owner, this is a great time to consider selling your business. Economic conditions are right and the cost of borrowing money is still low so that means buyers are plentiful. However, is the time right for you personally? The answer depends on several factors.
Here’s what you need to think about.
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When you’re in the process of selling your business, you have hundreds of details on your mind. Documentation to gather, papers to sign, meetings to attend…it can be overwhelming. But it’s important to add one more detail to your plan: when and how to tell your employees about the sale.
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Most business owners know that instead of turning around and locking the door to your business the final time, it’s much better to hand the keys over to a willing buyer in exchange for a sizable check.
What may not be so clear are the options when you decide it’s time to sell. List your business with your franchisor? Or seek the services of an outside party?
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When you started your business, you probably didn’t spend much time thinking about how you were going to leave it. The reality is, you will exit your business one day. Shaping the terms of the departure is something that requires careful planning.
By far the most desirable (and lucrative) outcome is to liquidate your years of hard work in the form of a business sale. One of the advantages of belonging to a franchise network is that there are usually many willing buyers that already understand and value your business. Finding a buyer might be as easy as letting your fellow franchise owners know you’re for sale. It can make for a clean and fast transaction.
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Just 25 miles northwest of Pittsburgh is the town of Monaca, Pennsylvania. It's where Michael Sklack and his wife, Donna operated their UPS franchise location for nearly 15 years. It's a small town of about 6000 people, but the close proximity to some major metropolitan areas meant they had a steady stream of customers.
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Imagine going through the process to sell your franchise business. You’ve agreed on a price, the franchisor approved the new buyer and financing is a go. But there’s a problem: Your landlord objects. You pull out your lease agreement and it says you have to pay thousands in lease assignment fees even IF the landlord accepts the buyer. How could that be? How could your landlord hold up your life plans, potentially millions of dollars, and kill a good deal for everyone?
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In 2010, Blane Britton was pumping iron at an Anytime Fitness location in Marian, Arkansas. He was just 17 years old at the time and contemplating some upcoming life decisions. That's when the idea hit him. He was going to own his own gym.
"Living a healthy lifestyle became a passion of mine, and honestly, it changed my life," he says. Not knowing what to do next, he struck up a relationship with the manager. After dozens of questions and getting a feel for what it took to run a gym, he reached out to Anytime Fitness Corporate.
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The sale of your business may be the largest transaction you will ever do. Because the stakes are so high, nobody wants to get it wrong. When it comes time to price your business, it’s ok to aim high, but setting your expectations too lofty can ruin your chances of finding a buyer quickly - or at all.
So what’s the right price for your business? "It’s both a science and art," says Jon Franz, founder of Franchise Clearly, a firm that specializes in selling franchise businesses. When determining a sales price, Franz looks at the total owner benefit and compares that to other similar businesses that have sold recently.
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2020 was a brutal year. It changed the way all of us looked at our lives, our goals, and our priorities. We learned what was important and we made big decisions about the future. If you’re a franchise owner, you’ve survived a very tough year. Congratulations on coming out on the other side.
The good news is, economists are predicting a much better 2021.
And that’s why it might be time to consider selling your business. Here’s why.
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