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The FR Factor

Being a franchisor means being responsible for a business network and brand. The franchisor is ultimately responsible for the brand and the franchisees within. This involves providing the overall support and resources the franchisee needs to succeed as well as ensuring that the franchises are being operated to a certain standard. They are  responsible for training and recruiting new franchisees as part  of growing the franchise and brand.

So what happens when a franchisee wishes to move on?

The franchisor has the final say, however the seller also has a vested interest in what happens next. How do you protect your franchisees and do what is best for them whilst looking after your business and brand?

One of the best things you can do for your franchisees is to ask them to plan their exit. No matter if they have just started or if they have been with you for a number of years. The best protection for you and for them is an exit strategy. If a franchisee has these plans in place you can be assured that they are working towards an end goal and will be doing everything they can to create a successful business.

The exit plan is just the beginning of a franchisee exit. From the minute they decide to sell their business there are many decisions that need to be made.

One of these is who will be your new franchisee? This is your decision as a franchisor, you know what type of person you want to have in your network.

There are many factors to consider here: can the prospective buyer meet the financial responsibilities of the businesses after the initial purchase. It may be an established business they are buying however there are still ongoing costs once the new franchisee has taken over. The last thing you need is to find a great candidate only to find out they may not have the finances to cope with running a business.

Are they a strong leader? The overall reputation of your brand can suffer even if just one franchise out of many performs badly. You must be able to assess your prospective franchisees on their leadership qualities and experience in leadership roles.

Communication skills are also vital for your new franchisee, not only will they be expected to show excellent customer service skills within their new business they will also have to show they can communicate within the franchise itself. Communication is so important in business, for building relationships between franchisees and franchisors as well as between staff and customers.

Depending on their reason for selling and your relationship with your franchisee finding the right candidate can be a difficult process. They are still responsible for the day to day running of the business and may not have the time to vet all of the possible candidates, which will then fall to you. This is a waste of your time and theirs. Having the right candidate is so important. You will need to have a new franchisee who will push the business forward and make a success of it.

Whilst you are ultimately responsible for the franchise as a whole, the day to day running of the franchises is down to the franchisees, Ensuring that staff contracts are in place with clear roles outlined is something that should be done from the beginning, however it is essential when your franchisee wishes to sell and to ensure a smooth sale of the business.

The franchisee must also make sure that they continues to run the business effectively. This can be difficult during the sale of a business. They may not look as hard or have the time to scrutinise a candidate before passing them on to you. This can be frustrating for you and your franchisee.

You need the FR Factor: Protection for both you and your franchisees.

For your franchisees, deciding to sell doesn’t have to be a hassle. Our process will help them focus on getting their business into the best possible position to sell whilst we screen potential candidates and arrange meetings when we believe we have the best possible person to be your new franchisee.

One of the positives of our system is that it saves you time. You do not have to spend time going through an extensive list of candidates for the right one. We can help your franchisees plan their exit and when the time comes put that plan into motion.

We can help you to protect your franchisees which in turn protects you and your brand. We have over 150 years combined experience in franchise resales. We understand what you expect from your franchisees. We help your franchisees prepare their business for sale, point them in the direction of the right solicitor and banking contacts, offer advice on different aspects of the sale as well as helping your franchisees establish the right price and finding the perfect franchisee.

The most important aspect of your franchisees selling their franchise for them is getting the right price. The most important aspect of your franchisees selling their franchise for you is getting the right franchisee to take over and grow the business.

The upcoming National Franchise Show in Birmingham is the perfect opportunity for you to meet our team. Why not book an appointment and see how we can help to protect you as well as your franchisees. Call us on 01522 246811 or email marketing@franchiseresales.co.uk

 

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Planning Your Getting Away – Buying a Franchise Resale

Have you ever dreamed of getting away from your current career, and starting afresh? It’s a dream that many of us hold, and franchising gives you the perfect opportunity to realise it. The concept of franchising has been around for decades now, and it’s easy to see why it’s still so popular today. Rather than sticking your neck out and risking all by starting your own business, you are instead able to tap into the success of an already popular brand. Even though you have to pay a monthly fee to the parent company, the benefits you receive in return are enormous- they take a lot of the stress out of business management. Franchises are a big hit with consumers, too, since people are hard-wired to choose something familiar over something new. It’s thanks to the franchising model that fast food chains like McDonalds have been able to conquer the world- wherever you go, when you see those golden arches, you know just what’s on the menu.

Operating a franchise is a chance for you to start a whole new life, and really make something of yourself. Instead of spending day in, day out working for your boss, you’ll be the one in charge. Yet starting a franchise from scratch can be an extremely time-consuming process. On the other hand, buying out an existing franchise means you have a lot less to worry about. Instead of having to spend months working overtime to get the business off the ground, you’ll know that the hard work has already been taken care of. Existing franchises already have a core base of customers giving them a steady stream of income, and will have built up a reputation in the area.

If you’re thinking about entering the world of franchising, though, then it’s vital that you come prepared. Just like when you go on holiday, you should make a checklist to ensure that everything is sorted before you finalize the deal. Firstly, you’ll want to take a look at the franchisee’s books, to see that everything is in order. After all, if you buy out a franchise just to find that its finances are in a real mess, then you might as well have started from scratch. If things are looking good, though, you’ll have a real opportunity to hit the ground running.

Next up, you should think about the staffing situation. Will the existing employees stay on to work under you, or will you have to take on a whole new team? The former option is the easiest for buyers, since you don’t have to worry about recruitment and training while you are still getting to grips with the business yourself. Having a team of employees who already know how things work takes a lot off the heat off you, so it can be helpful to those who are just getting started in franchising. On the other hand, you might want to put your own stamp on the franchise, in which case hiring a fresh set of employees might be the better option.

Last but not least, you’ll want to learn as much as you can about the particular franchisee’s relationship with the franchisor. For instance, how much freedom do you have to set your own prices? Does the franchisor provide ready-made promotions and marketing materials, or will you be responsible for this yourself? Not only does learning about the franchising arrangement teach you more about how the business works before you get stuck in, but it will also give you an indication of how much work you’ll be expected to put in yourself. Use this step to determine whether you want to have a lot of control over business processes, or whether you’d rather go with the flow and focus on the more immediate task of running the business on a daily basis.

Contact us today and plan your get away. Call us on 01522 246811 or e-mail info@franchiseresales.co.uk.

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Planning Your Get Away – Selling a Franchise Resale

When going away on holiday, it’s vital that you sort all the essentials. From having your travel documents ready and waiting, to packing clothes for all weathers, you need to be prepared if your trip is going to run smoothly. The same thing goes for selling your business- and particularly when you’re reselling a franchise. Whether you’re looking to retire from franchising altogether, or just want to make a fresh start with a new business, the easiest way out is to sell your franchise on to a new owner. That way, you don’t have to worry about winding down the business, or keeping one foot in running it. Instead, you’re able to ride off into the sunset, and enjoy the next stage of your life, hassle-free.

It’s not enough to simply put the franchise up for sale though, and hope that someone will come along and take it off your hands. You need to put some effort in to make the business an attractive proposition, so that buyers will be more eager to take it off your hands. By following the advice below, you’ll be able to ensure that you’re all set to kick off the selling process, so that all parties concerned- you, the seller, and the franchisor company- are happy with the way that things pan out.
First things first, you should ensure that all your bookkeeping is in order. That way, if someone wants to know just how well the franchise is doing, you will be able to give them a clear indication. If your franchise is running smoothly, then this will give you a much better chance of finding a buyer quicker. On the other hand, if your finances are in a mess, then a buyer might think that they are better off just going it alone. The bottom line is, make sure you can demonstrate in simple terms that your franchise is in a strong position, to attract as much interest as possible.

Another thing you’ll need to do is have a plan in place for your existing staff. If they are going to stay on, then this will also make the sale easier to negotiate, and will give the new owner less work to do. Instead of having to recruit and train a whole new team while learning the ropes themselves. They will be supported by an already strong team of employees who know how to run the business on a day-to-day basis. Of course, this might be tricky if, for example, the team is made up mainly of friends or relatives, who won’t want to stay on after you leave. In this case, it’s best if you frame the situation as a strong opportunity for the new owner to put their own stamp on the franchise, and run it the way that they want to.

Finally, make sure you’ve squared things with your franchisor before you formally begin the selling process. While many franchisors are happy for franchisees to pass the business on to a new owner, you will still need their approval first. They will likely also want a say in just who their new franchisee is, so that they can be sure their reputation is in safe hands. You’ll also want to be clear on their policies towards franchisees, although since you’ve already spent time running a franchise, you should already be familiar with this. Make sure you let potential buyers know just how things work in regards to the agreement with the franchisor, so that they can easily tell whether yours is the type of franchise that they are looking to get involved in.
Contact us today and plan your get away. Call us on 01522 246811 or e-mail info@franchiseresales.co.uk.

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Keeping It FResh: Would You Do It Yourself, or Call In the Experts to Buy A Franchise?

If you’re looking into buying your own franchise, then congratulations- you’re making a great choice! A franchise allows you to benefit from the brand recognition of a bigger company, and gives you the resources you need to succeed. All in all, it’s an excellent business model which has proven its success by taking over the world some excellent examples are companies like McDonalds, Pizza Hut, and KFC.

However, the hardest part of running any franchise is the whole process of getting started. During that time, there’s a lot for the franchisee to worry about, from attracting a solid customer base to recruiting employees, to balancing your books. Not only is this the most difficult period of franchise management, but it’s also the most financially demanding, since you will often need to invest a significant amount of your own money into getting things up and running. If only there was a way of owning a franchise without having to go through all that.

Well, luckily for you, there is. By buying an existing franchise, you’re able to avoid that start-up period entirely, as your new franchise is already established. Instead, you can learn the ropes of running the business without those extra hassles hanging over your head. You’ll already have a strong customer base and a firm foothold in your area, so all you have to do is concentrate on keeping those tills ringing and living up to your franchisor’s reputation.

There are plenty of people out there who are looking to sell their franchises, but the actual process of finding the right one for you can be pretty tough. It needs to be in the right location, present the right level of challenge that you’re looking for, and most importantly of all, be in a strong financial position. The last thing you want to do is to finalise the sale only to find that your new business is hemorrhaging money.

If you are thinking about buying a franchise there is a lot to consider. Should you speak to an expert or go it alone? Finding the right franchise for you can be time-consuming, once you have found one that you are interested in, you must carry out due diligence, look at the franchisor, speak to the franchisee network as well as talk to the right people to secure the relevant funding. Not only can an expert help you to find a franchise resale they can also save you time and money during the process of buying a resale. A franchise resale broker such as Franchise Resales, can work with both the buyer and seller to ensure that the transition from old to new management is a smooth one.

So, if you’re looking to get into the exciting world of franchising, but don’t want to throw yourself in at the deep end, come to us. Our friendly, knowledgeable staff are always willing to go the extra mile to help you get started, and we have plenty of options available right now. Just get in touch to let us know what you’re looking for, and we’ll get to work on turning your franchising dream into a reality. Whether you want to start small, or are ready to take on a larger franchise, we’ve got the perfect fit for you!

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Keeping It FResh: Would You Do It Yourself, or Call In the Experts to Sell Your Franchise?

There’s no doubt about it- reselling a franchise is tougher than it first appears. You might well have a stellar business plan and plenty of resources to pass on to your buyer, but just how do you go about finding them in the first place? Unlike selling a conventional business, the market for reselling a franchise is smaller, because many people do not always want to have to pass on a portion of their takings to the franchisor.

Selling a franchise also comes with some extra complications because it’s not technically your business that you are selling. You’ll need full cooperation from your franchisor in order to close a deal, and you’ll have to convince them that your buyer is up to the job. If you neglect this crucial point, then you could find that the deal falls through at the last minute, and you will then have to start right back at the beginning again.

What’s more, while you’re looking to resell your franchise, you will have to carry on running the business in the meantime. Naturally, that takes up a lot of time, and you might find yourself too exhausted to even contemplate hunting down a new buyer. In order to resell your franchise for the best price, you need to have it up and running at full capacity, so how will you find the time to conduct the selling process yourself?.

As you can see,  reselling a franchise can be an extremely stressful process, especially when you just want out. You will need to assess whether you have the time to run your business as well as searching for the right person to buy your franchise. If you decide to outsource the sale of your franchise you will get help through each part of the selling process. From getting an independent valuation to getting the ball rolling, to exit planning and due diligence, as well as getting the franchisor’s approval of the buyer. An external partner will aim to achieve the best deal for both sides, so that you get a fair price for your franchise and make a smooth exit from the business, and your buyer gets a franchise that’s already on a firm footing.

So, if it’s time for you to move on from your franchise to pastures new, We are here to help. With an extensive network of contacts, we make the reselling process as quick as possible. No one else in the UK offers the same level of service that we do, so you can be sure you’re making the right choice when you come to us. With connections to expert solicitors to oversee everything, we can help the whole process to run smoothly and efficiently. Don’t give yourself the extra stress of having to find a buyer yourself- thanks to Franchise Resales, you can focus on your future instead.

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Stronger Together: Why You Need Support to Succeed in a Franchise

Taking on a franchise can be difficult and challenging and you can’t do it without a staunch support network behind you. Whether that’s getting the right advice on franchising in the first place, working with colleagues to put together a robust growth plan in the business or simply getting the support from friends and family, if you want to succeed you need to be able to draw on help when you most need it.

Family Support

Going out alone and essentially running your own company as part of a franchise group is not an endeavour that should be undertaken lightly. Whether you buy a resale or a new start, you will need to put some of your own finances into the operation and make the right choice of franchise along the line. If you are planning a move into the franchise arena, you will need the support of your family, particularly your partner. They have a vested interest in what is going to happen, certainly if you are moving from being employed by a business to starting out on your own.

Support is a two-way process. That includes being open and honest with your partner about what the prospects are and how you are going about choosing the right franchise which works for you. There may, for instance, be a period when things are tight and you have to put all your effort into getting the franchise off the ground before you begin pulling in a reasonable profit.

Picking the Right Franchise

You might have a keen business brain (or think you do) and are able to recognise a great opportunity when you see it. But if you are new to franchising, it makes perfect sense to get some support in the initial stages. Finding a franchise expert who can help you work through the details of any offer and how this fits with your future plans is imperative and could mean the difference between success and failure.

Franchise Support

Picking the right franchise also involves looking at the kind of support you are going to receive while you are setting up. With a franchise resale, you are going to be taking on an existing business with a track record but you will probably still need to learn vital skills to bring you up to speed. The training and support that is on offer is vital for any future success.

Building Business Support

Never underestimate the power of networking – it forms the core of many successful business relationships. Networks are a great way to build support for your franchising dreams and can provide you with in-depth information to help you not only make the right decisions but to begin to grow your business. If you aren’t already a member of local networking groups, now is a good time to join. What you’ll find is a whole host of business experts and experience that you can call on when you most need it.

Building Work Relationships

Of course, the other support you need is with the people you are going to work alongside. If you are taking on an existing workforce, then you need to build those relationships and leverage them effectively. Any business is only as good as the people who do the hard yards and getting them onside is critical to success.

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What is the Right Franchise for You?

What does a good business look like? More importantly, what makes a good franchise and how do you recognise a great opportunity? There is a lot of choice out there and it can sometimes be difficult to choose exactly the right fit, something which fulfils your ambitions while also matching your skill set.

Look at Your Finances

One of the first things you are going to need to decide is how much money you are will be able to put into the franchise. This can range from small amounts that are readily available to larger sums which may require you to go to a bank for a loan. It’s not just financing the initial startup that you have to consider but how you are going to operate in the short term while you get everything to a productive and profitable state.

Look at Yourself

Next you need to understand your own strengths and weaknesses. Are you going to be looking at a franchise in a sector you are already familiar with? Do you want to move in a completely different direction and have transferrable skills which can be used? What are you passionate about and can you find a franchise that somehow meets that passion? Another issue you need to consider is how much support you are going to get from those around you. Taking on a franchise is a big step and you’ll want those nearest and dearest to you to be fully on board.

Doing Your Research

Once you know what you are looking for, you can begin researching the market and looking at a range of different franchises. There are franchises for practically every type of business from the hospitality industry and services to management, recruitment and construction to name just a few. You can certainly use the internet to get a deeper understanding of the sector you are moving into if you are going for a complete change. The more knowledge you have about the product or service then the more likely you are to make good decisions when it comes to finding the right franchise.

Build a List

Building a list of potential franchise opportunities should be easy if you know where and what to look for because you have done your research. The next step is to cut down your list and carry out more specific research for your chosen business – that includes doing as much due diligence as possible such as directly contacting and talking to current franchisees.

While it might be an extra cost, it’s always a good idea to get the services of a franchise specialist who can help steer you in the right direction and also work with you to carry out that vital due diligence. You will also need to hire the services of a franchise solicitor to deal with any legal matters.

The biggest tip we can give for choosing the right franchise is to take your time. While you might be in a hurry to get up and running, it pays to make any decisions in the cold light of day. Always give yourself a cooling off period where you can weigh the pros and cons before entering into a franchise agreement. After all, getting it wrong can prove to be an expensive mistake.

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Recruiting Franchisees: How to Find a Good Egg

On paper, it sounds pretty simple. You have a good business model, you decide to franchise, and you take people on board as franchisees who want to help your company grow. While many franchisors succeed in attracting just the right person to their business, others aren’t so lucky.

The rise in franchise resales could be symptomatic of a failure to find the best people, particularly when it occurs within just a few months of taking on a franchise in the first place. While most consultants would advise you need to keep going as a franchisee and get support rather than sell, many simply find themselves facing up to having made a bad decision in the first place.

Franchisees failing is not unusual. If you are a franchisor, however, you should be making every effort to ensure that this doesn’t happen. It not only impacts on the franchisee as an individual but can damage your brand if outlets fail. Your attempts to attract the right people are vital.

Creating a Strong Business

The first thing you need to understand is how ready your business is for a franchise model. Have you reached the stage when it’s a viable option or is it still a little too early? Is your business model replicable outside of its existing form? What processes do you need to put in place to ensure franchising success and do you have the budget and team to carry it through? All these questions need to be answered before you go ahead and put your brand up as an attractive business that others will want to get involved with.

Choosing the Right Franchisee

The selection process is key if you want to be sure that you get the best franchisees. That means having an intrinsic understanding of what is needed to succeed in your business. It’s not simply a matter of the applicant having the money to invest. Do they have the other qualities that you are looking for? Are they likely to stick around and make a success of it or bail out at the first sign of trouble? How are they looking to develop and evolve and what impact will that have on your franchise?

In the many cases, businesses simply don’t have the experience or processes in place to make good selections when it comes to franchising. Using a franchise consultancy that has experience is the best option and can greatly reduce your chances of making a mistake in the selection process. You need to be choosy here – it benefits no one if your business opts for a franchisee who isn’t going to last the distance.

Support for Franchisees

Finally, the other major factor in ensuring that franchisees don’t drop out is the provision of training and support. Hopefully, not only is the franchise buyer coming into a business that has a strong and successful track record but they also have access to the support and guidance they need to make their investment worthwhile. Again, it pays to liaise with a franchise consultancy who will be able to guide you through what is needed and what works.

Finding a ‘good egg’ is not a complicated process. It does, however, require a good deal of focus and work to put in place the recruitment and retention measures that ensure you get the right person and helps you deliver the support that keeps them on board.

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Preparing to Buy a Business: What You Need to Know


There are numerous benefits to buying an existing business. Firstly, you have the staff and the resources in place who are already operating. There’s a ready made customer base and a product or service to sell. There may also be the potential to expand either through opening new offices or stores or entering a franchise arrangement.

On the downside, buying a business is generally more expensive than starting one from scratch where you can control your budget and grow at a pace that suits you. What might seem like a good prospect in the first instance can turn out to have too many problems lying under the surface that will cost you more time and money.

But, if you are going to buy a business, how should you prepare yourself to take it over and improve your chances of success?

Is It a Good Match?
The first thing you need to do is find a business that matches you – not only your skills and knowledge but also your own personal philosophy. Another issue is going to be the geographical location, whether the company is in one place or has offices in different parts of the country, perhaps even around the world, and how that fits with your circumstances.

You are going to have to decide whether you’ll go to a company direct and make an offer or you go through a business broker. A broker can screen certain businesses for you and, hopefully, find a better match not only for your budget but in line with your values and beliefs. They can also help with getting the right due diligence measures in place.

Putting Together a Top Team

If you are interested in an acquisition, the next step is to get the right team together that can help you move forward. This will include people like your bank, your accountant and a solicitor. Performing your own due diligence and making sure you have all the relevant information you require to make an informed decision is vital. That will not only include looking at the books but also checking out the company’s reputation, perhaps talking to customers and going to meet suppliers, and whether there are any underlying problems that have to be considered.

The Company Prospects

Of course, at the heart of all this is the performance of the company. What kind of revenue is it earning? What are the outgoings? What is the scope for expanding the business, either by investing in new offices or going down the franchise route?

One thing that many buyers don’t factor in is what impact the current business owner has. What happens when they are no longer there? Will customers who valued his or her presence at the helm of the company be likely to look elsewhere or try to find a better deal? How are the current staff going to feel about a new owner? And what restrictions are going to be in place should you wish to bring in your own team?

Future Prospects

At the top your list is also going to be how you drive the business forward and what prospects lie ahead. While you may have had these in mind from the start, once you get into the detail of the transactions, these can change drastically as you learn more about the company itself.

Preparing to buy a business is not a simple matter of getting out your cheque book and taking over. There are a multitude of issues to consider and decisions to get right which can impact on the final cost. Having the right team of advisors and support in place is key to success. Knowing what you really want is absolutely vital.

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Spring Clean Your Business In Preparation to Sell

There are numerous reasons why you may want to sell your business. It might simply be that you want to move onto something new. You may have decided to retire. Or you might think the future of your company is better served by new investment or different management. This is particularly relevant in areas such as franchise resales.

Selling a business, of course, is one thing. Actually getting it right is another thing entirely. If you want to sell your business for a good profit, then first you need to make sure it is worth it.

Is it the Right Time?

There’s often an optimum time to sell a business. It’s worth getting professional advice about the true worth of your company – a third party review of your assets and processes can not only be very revealing it can also give you a pathway to putting in the changes that increase your attractiveness to potential buyers and improve your ability to obtain a higher asking price.

One thing you need to ask is whether it’s the right time for you as a business owner. This is a judgement call but one which is quite important in the whole equation. The other issue to consider is if the industry conditions are good for getting a strong sale.

Get Your Books in Order

No business or individual buyer worth their salt will consider your company if the accounts are not transparent. Most will want to look at least the last three years of books and this needs to be formally laid out for them. The better your books look, the more likely you are to create a favourable impression. A review of your accounting procedures could well highlight areas where you could improve and make your business appear more attractive.

Keeping Your Business Clean

Any potential buyer will want to know that there are few, if any, underlying problems that might have to be handled in the future. Again this comes from having transparency about how you and possible franchisees conduct your business. That includes all written documentation concerning any contractual arrangements. It will also include details of any other relationships such as property leases and supplier information.

Is Your Business Growing?

Potential buyers aren’t going to be interested in a business that is stagnating. If you are too dependent on one particular customer or there isn’t the option to expand that makes an increase in profits realistic, then you may find that interested parties are few and far between. Another problem could be how much the business depends on you as an individual. This can be off putting because you are soon going to be exiting the scene. Putting in the processes that address this prior to going for sale can make a big difference to how attractive your business is and that often means handing over responsibility to your best employees.

In essence, potential buyers will look at:

  • Your track record and the potential for future development.
  • Your brand and how it fits into the market place.
  • The experience of staff currently on board.
  • The marketing support you provide to enable your franchisees to succeed.

Giving a shout out about how your business has a good track record and is set for expansion will appeal to potential buyers. When there is a prime opportunity to expand, buyers will not only be able to find new and exciting markets but also access services like bank loans to push their growth model forward.

How your business looks and it’s potential for the future is what largely determines the price that you will eventually be paid. Having the right team in place to make sure that your franchise resale looks as good as it can is important. For most business owners, getting an outside, professional review of the franchise and how much it is truly worth is the first place to start.