How to sell franchises
Video: How to Sell Franchises (9 Recommendations for Emerging Franchisors) 2024, July
Today, a franchise is a pretty profitable collaboration between both parties. The buyer invests in the seller’s business, and the seller shares his secrets with him and provides support in the work. As a result, the network begins to grow faster, gaining more and more popularity throughout the country.
You will need
Internet access.
Instruction manual
1
Formulate the benefits for the franchise buyer. Here you need to clearly understand what exactly a person will receive - support on your part, training, software, products. In this case, you need to give an answer to the franchise buyer to the question why he needs to buy this particular franchise, what is the peculiarity of your business. Think about what a key feature the company has, which competitors do not have. This is exactly what needs to be described in the section that the franchise buyer will receive.
2
Formulate customer requirements. Start by determining the amount of your contributions. Determine the down payment (one-time payment), royalties, and also the advertising fee (often they are absent). Now you need to identify the territory that is interesting for the development of your business. Finally, identify additional requirements that are required directly to open a representative office. This includes starting investments and the size of the room in which the representative office will operate.
3
Place a franchise ad on specialized resources. Today on the network you can find many portals dedicated to the sale and purchase of a business, it is there that you can find the most diverse offers for buying a franchise. After some time, people will contact you at these contacts to complete the transaction.
4
Sign a franchise purchase and sale agreement. It is very important that this document is drafted by competent lawyers. Remember that franchise buyers will always look for possible “holes” in the contract to take advantage of new opportunities. And at the same time, you need to leave space for a small maneuver, otherwise your franchisees will feel locked up in tight frames.
note
Selling a franchise is a troublesome business, because the buyer will not be your subordinate, he will conduct his own business, so you cannot fire him. And if the parties do not reach mutual understanding, then only one way out is possible - termination of the contract.
