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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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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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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.