Disappointing Buyers, That’s What We Do
We’re in the business of disappointing people every day. Technically, we’re in the business of selling franchises, and over the past couple of years, demand has exceeded our supply of available units. By a significant amount.
Right now, we’re experiencing a time of economic uncertainty. That prompts people to take one of two paths: to hunker down and hope for the best, or to take charge of their own financial security. We work exclusively with the second group.
In 2024, we averaged 4.24 qualified offers for every unit of The UPS Store we listed (and we’re tracking 4.4 this year.) That means one buyer bought into a profitable and established franchise with a long history of success. It also means three buyers went away disappointed – and more determined than ever not to miss out on the next opportunity.
Buyers who have undergone the screening and pre-qualification process are not only more motivated to close a deal, but they’re also ready to make their best and highest offer – faster. We’ve seen buyers relocate to purchase a franchise, moving from one coast of the country to the other to take advantage of the right opportunity.
They not only sharpen their pencils to make the highest offer; they understand that the offer with the best terms stands the best chance of success. Terms can make or break a deal for a seller. How large a deposit the buyer is willing to put down during the diligence process. How long they expect the diligence process to take. How long it will take to close. Who is going to be responsible for paying the transfer fees and financing needed upgrades (both of which can have a big impact on the net from the sale.)
Of course, franchisors also offer to sell franchise units, but most of the sales force focuses on a single geographic area (although it might be large). A prospective buyer might be working with someone in the Northeast for some time, unaware that opportunities exist in the Mid-Atlantic region or the Midwest that would be a great fit. Our database of buyers is national, and it’s growing every day. For every The UPS Store franchise we list, we get somewhere between 400 and 2,000 matches in our system.
In fact, we’re adding 300-400 interested buyers into the database every month. Their backgrounds vary: corporate retirees or escapees, veterans or government employees seeking the next opportunity, first-time or serial entrepreneurs, or other franchise owners looking to expand their business holdings. Before we connect them with a seller, we make sure we screen them for suitability (for the business and the franchisor), validate their financial standing, and make sure they understand the process (and how fast they’ll need to move to get their offer accepted.)
We never advise a seller on which buyer is the right one; that’s a personal decision based on financial and personal factors. We present pros and cons and let the seller make the choice that’s right for them and the business.
But we know that our proprietary system gives them an enormous amount of data about a buyer that they might never get when listing with their franchisor. Sellers can see real-time buyer activity and status. This is unheard of with other brokers or a franchisor resale team.
If you would like to find out how many buyers match your business, contact us at 877-557-0222 or email contact@franchiseclearly.com
