How can you prepare your multi-unit franchise for a successful sale?

1 Assess your financial performance

The first step in preparing your multi-unit franchise for a sale is to review your financial performance and records. Buyers will want to see how profitable, stable, and scalable your business is, and they will look for evidence of consistent revenue, growth, and cash flow. You should have at least three years of audited financial statements, tax returns, and bank statements ready to show to potential buyers. You should also have a clear understanding of your expenses, liabilities, and assets, and be able to explain any fluctuations or anomalies in your numbers.

3 Evaluate your legal compliance

The third step in preparing your multi-unit franchise for a sale is to evaluate your legal compliance and ensure that you meet all the requirements and obligations of your franchise agreement, as well as any local, state, or federal laws and regulations. Buyers will want to see that you have a valid and transferable franchise contract, that you have paid all the fees and royalties to the franchisor, that you have complied with the brand standards and quality controls, and that you have no pending or potential lawsuits or disputes. You should also have all the necessary licenses, permits, and insurance policies in place.

4 Enhance your curb appeal

The fourth step in preparing your multi-unit franchise for a sale is to enhance your curb appeal and make your business look attractive and inviting to potential buyers. Buyers will want to see that you have maintained and updated your facilities, equipment, and inventory, that you have a clean and organized work environment, and that you have a consistent and appealing brand image. You should also consider making any minor repairs or improvements that could increase the value or functionality of your business.

5 Hire a professional broker

The fifth step in preparing your multi-unit franchise for a sale is to hire a professional broker who can help you find and negotiate with qualified buyers, as well as handle the legal and financial aspects of the transaction. A broker can save you time, money, and stress by providing you with expert advice, market insights, valuation tools, marketing materials, and due diligence support. A broker can also help you maintain confidentiality, avoid common pitfalls, and achieve the best possible deal for your business.

6 Plan your exit strategy

The final step in preparing your multi-unit franchise for a sale is to plan your exit strategy and decide what you want to do after the sale. You should consider your personal and professional goals, your financial and tax implications, and your emotional and psychological readiness. You should also communicate with your franchisor, your management team, your staff, and your customers about your intentions and expectations. You should be prepared to provide ongoing support and assistance to the buyer during the transition period, as well as to deal with any post-sale issues or contingencies.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?