Franchise-able business looking for advice

[GeorgePilau]

Hello, my name is George.

I started my grab & go food business 5 years ago. We have built it into an international franchise and I would now like to sell it to someone who can market it and take it to the next level.
Where does one start?

Any advice most welcome.
Thanks,

George

 

[Goingitalone]

Hi George,

First of all, congratulations on building a business in just five years just gone international. I have looked at the franchise process in years gone by and it certainly is not easy to get off the ground and make a success. As far as selling the business, I would look towards one of the many business selling agents on the Internet as opposed to advertising yourself online. Unfortunately, as soon as you post details of your successful business you will be hit by spammers and "tyre kickers" wasting your time. The majority will just be trying to find out how you set up the business so they can set up their own.

By using a business selling agent you will be able to use their contacts and don't forget, it is you who will eventually choose the sale price. Yes, in years gone by this business sector has had a chequered past amid accusations of sellers being ripped off as agent sold to friends, family and associates. Choose a reputable business with acceptable commission rates and, in a perfect world, only choose those who are paid on success. There is nothing better to focus the mind!

 

[lookingforadvice]

Just a thought, have you ever thought of selling the business on but retaining a minority stake in case it was to go to crazy levels?

 

[Marcos Booth]

What level do you want to take it to?

 

[SethMorris]

You made a greate work! I hope everything is ok now

 

[felandere]

If you're looking to sell and take it to the next level, it might be worth considering partnering with complementary businesses. For instance, have you thought about teaming up with a gym studio franchise? Combining your grab & go food options with a fitness studio could offer a unique and healthy package deal for customers. It's all about finding the right fit and synergy to maximize growth potential.

 

[Percyholmes]

Hello George,

Congratulations on building your grab & go food business into an international franchise! Selling a business of this scale is a significant step, and here are some key steps and considerations to help you get started:

1. Valuation: Determine the value of your business. You may want to consult with a business appraiser or a financial advisor to assess its worth. Consider factors like revenue, profit margins, assets, brand recognition, and growth potential.
2. Preparation: Make sure your financial records are well-organized and up-to-date. This includes profit and loss statements, tax returns, and any relevant legal documents. Presenting a clean financial history will instill confidence in potential buyers.
3. Find a Business Broker: Consider working with a business broker or intermediary experienced in your industry. They can help you find potential buyers, negotiate deals, and handle many aspects of the sale process.
4. Confidentiality: Keep the sale confidential until you have a serious buyer. Leaks about the sale can unsettle employees, customers, and suppliers.
5. Marketing: Create a marketing plan to attract potential buyers. This might include listing your business on relevant websites, utilizing social media, and networking within your industry.
6. Screen Buyers: Not all potential buyers will be a good fit. Screen them carefully to ensure they have the financial resources and expertise to take your business to the next level.
7. Due Diligence: Be prepared for buyers to conduct due diligence on your business. This will involve a deep dive into your financials, contracts, customer data, and more. Be transparent and cooperative during this process.
8. Negotiate Terms: Negotiate the terms of the sale, including the purchase price, payment structure, and any contingencies. Ensure that you have a legal advisor experienced in business sales to assist with this.
9. Legal Documentation: Once you've reached an agreement, work with your attorney to draft a comprehensive sales agreement that covers all aspects of the deal, including warranties, liabilities, and transition plans.
10. Transition Planning: Work out a transition plan with the buyer to ensure a smooth handover of the business. This may include training, transferring contracts, and customer communication.
11. Closing the Deal: Coordinate with your legal and financial advisors to complete the sale. Ensure that all legal and financial obligations are met.
12. Post-Sale Support: Be prepared to offer post-sale support to the new owner to ensure a successful transition and maintain the integrity of your brand.

Selling a business can be a complex process, and it's essential to seek professional guidance throughout. Finding the right buyer who shares your vision for the future of your franchise is key. Good luck with your business sale, George!