Franchise SALES & RESALES can help you
Franchise SALES & RESALES offers consultancy services to franchisors, franchisees and investors. The service is based on experience gained since 2001 of the franchise and business sectors, combined with valuable advice and guidance and is further enhanced by the professional bodies we are associated with.
The risk element of acquiring an established franchise resale is a lot less than acquiring a business for sale, for all of the above reasons.
So why is the existing franchisee selling? There are no precise reasons although the following are commonplace:
- The franchisee has had many profitable years
- The franchisee may not be able to fully commit to the business
- The franchisee has become bored and is looking for a fresh challenge
- The franchisee may wish to relocate
The value of the resale will vary on many factors, and different methods can be used to value the franchise resale. The most common method is a multiple of the profit; the multiple used can be anything from 2 to 8 times profit. The more recognised the franchise brand, the greater the multiple used. Other factors contributing to the value of the resale will be: staffing structure, historical trading accounts, does the franchise business have contracts with major clients, is the franchise resale in a prime location. Franchise Resale will usually cost more than an independent business for sale in the same sector. As with any investment, do make sure to do your due diligence thoroughly, contact a franchise solicitor, speak to Banks and other professionals involved in the resale process.