Sale Value of a Business is Higher when It’s a Franchise
A little known fact in franchising is that, when a franchise owner decides that they want to leave the franchise, their business is typically valued at more than what the average “Mom and Pop shop” is valued at. Even if all other factors are the same, a franchise can request more cash for their sale. Why? Because when a franchise is sold, the buyer isn’t getting just the experience of the former business owner, they are also getting an entire system of support with the franchise.
Buyers who purchase businesses usually have more capital to spend. Buyers who purchase existing businesses look for a couple of things: existing clients, existing cash flow, an ability to grow, and employees. With a franchise, all these things are organized and easy to deliver to a buyer because the franchise has systems in place to manage data, cash flow, customers, and employees. They have professional marketing materials and a professional sales team to help you sell the business when you are ready. The average “Mom and Pop shop” would struggle to compete with all of these advantages.
After all, wouldn’t you want to buy a business that looked nicer, was more organized, and had better support long term? If you said yes, you are like most other sophisticated buyers who favor franchises as re-sales. So what does that mean to you? If you are buying a franchise now and doing the hard work to build it, your payday on the other side can potentially be much larger than you anticipated. As Stephen Covey says, always “begin with the end in mind.”
Give franchise consultant Vicky Tade a call today to discuss this article and chat about different franchise concepts to see if they are right for you.
Contact Franchise Consultant Vicky Tade
Click to contact Vicky Tade Franchise Consultant to discuss the latest trends in franchise opportunities. She’ll help you understand the selection criteria and factors that really matter in franchising and business opportunities.
It’s critical to make the right choice in a business opportunity or a franchise system. As a Franchise Broker, I know that individual selection criteria can differ widely. What’s important to you may not be as critical to someone else. The key is to understand the universe of factors at play in terms of the fit of any particular franchise opportunity to your skills, experience and desires.
That’s why I always tell my clients to read case studies about how different franchisees came to their selections. Stories like this offer great insight into the difference between success and failure of a franchisee’s business.
Take a look at this one couple’s story by clicking here:
How a Couple Selected their Franchise System
They have owned their franchise for 10 years. Here’s an excerpt of why they went with franchising:
While getting my MBA in the early 2000s, I studied the success rate of new businesses and knew that the statistics were dismal. Since I had never started a business of my own, I was very aware that there was a lot I needed to learn. I felt that purchasing a franchise would equip me with proven systems, brand recognition, and marketing campaigns in one of the most crucial phases of the business—the startup phase. These tools were more than I would have been able to acquire on my own, especially at the onset of the business. I firmly believed this would give me a competitive advantage and ultimately, give me a better chance of being successful.
Contact Franchise Broker Vicky Tade
Discuss this article with Vicky Tade, seasoned franchise consultant, and learn some key tips of selecting the right franchise system. Her insights will help you understand what you need to look for in a franchise opportunity to maximize your happiness and your success.
Click here to contact Vicky Tade.
Entrepreneur Magazine brings us this very interesting franchising infographic that’s worth reviewing. One axis spans “Classic” versus “Kooky” franchise concepts and the other axis measures the “Hot” versus “Not” factor.
Winners include focusing on:
- Healthful snack machines
Franchise ideas to stay away from:
- Leather repair
- Bridal consignment stores
Contact Franchise Broker Vicky Tade
Click to contact Vicky Tade Franchise Consultant to discuss the latest trends in franchise opportunities. She’ll tell you if the concept you’re looking into is “hot” or “not”!