Three Myths Franchise Owners Believe

It’s very common for business owners to develop magical thinking when it comes time to sell their company, and franchise owners are no exception. Here are three common myths we hear from owners(sellers).

I already know what my business is worth.

Sometimes, this is magical thinking, but sometimes, it’s a question of doing simple math instead of a true valuation. “The franchisee on the other side of town does $2.5 million in sales, and so do I, so my business must be worth what his is.” Or “He owns three units just like I do, so mine must be worth what he just sold for.”

A Video: The UPS Store Owner Tells His Sold Story

Joe Gall owned multiple UPS Stores, but when he decided to make his life simpler and easier to manage, he turned to the franchise resale experts at Franchise Clearly.

In this video, Joe discusses his reasons for selling, his thoughts on the process, and the outcome he achieved. It's a rare glimpse into the mind of a UPS Store owner, and you can only find it HERE!

Announcement: The UPS Store Franchise location SOLD in Pascagoula, Mississippi

January 10, 2024 — Franchise Clearly, a leading authority in UPS Store franchise resales, is pleased to announce the successful sale of The UPS Store location in Pascagoula, Mississippi. This achievement marks a promising start to the new year for Franchise Clearly as they continue to facilitate seamless transitions for The UPS Store owners looking to sell their businesses.

Sometimes It’s a Marathon: Preparing for the Closing Process

Many business buyers choose franchises because they’re attracted to companies with well-defined organization and processes, and they often think that they can buy a franchise on their own without the help of a business broker. After all, the rules are specific, and the procedures are standardized. That should make it easier, right?

That’s a little like showing up at the Boston Marathon with a pair of running shoes and lots of enthusiasm, but no running experience.

The Time is Now to Plan for the Unexpected

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.

How Long Will It Take to Sell My Franchise

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.

Be Prepared for the Number One Question You’ll be Asked

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.

Why Buyers STILL Love UPS Stores

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.

Is the Allstate Buyout Your Best Option?

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?

Buyers Want to Purchase Your Business, Not Your Job

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.’”

The Fitness Business is Back!

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.

Selling A Brown Location - The Owners Story...

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.

Why You Need Help Choosing a Lender to Buy your Business

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.”

Is NOW the Time to Sell Your Franchise?

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.

Can an Employee Buy Your Franchise?

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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Expanding Your Franchise Ownership Might Be Easier than You Think

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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How to Sell Your Company to the Highest Bidder

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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Should You Consider Seller Financing When You Sell Your Business?

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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What Goes into Determining Your Franchise’s Sale Price

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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Why You Shouldn’t Buy a $400,000 Ferrari Before Your Business Sale Closes

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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When is The Best Time to Sell Your Business?

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 Should You Tell Your Employees About Selling Your Company?

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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Selling with Your Franchisor vs. Hiring an Independent Party

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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If You Already Have a Buyer, Do You Need a Business Broker?

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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Northeast UPS Franchise Sold: Shows High Demand

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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Can Your Landlord Kill the Deal to Sell Your Business?

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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Franchise Clearly Helps Military Vet Realize His Business Ownership Dream

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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What’s Your Franchise Business Worth?
Do your Expectations Meet Reality?

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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2021 Is The Year to Sell a Franchise Business

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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