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

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.

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

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.

What Franchise is right for you?

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.

Recruiting Franchisees: How to Find a Good Egg - Franchise Resales

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.

Preparing to buy a business - Franchise resales

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.

Spring Clean your business

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.

Your Favourite Store Could Well be a Franchise

Your Favourite Store Could Well be a Franchise

Most people don’t realise the brand name shop they are walking into is actually a franchise. It’s become a more popular way of operating a business model in recent years but has actually been around for centuries.

From MacDonald’s burgers and Subway sandwiches to your local opticians or favourite pub chain, many companies use the franchise process to expand their brand at a lower cost than normal. In the process, they provide great opportunities for entrepreneurs who want to run their own business.

The key to a franchise is that you get a licence to use a particular company’s brand and trade openly under their name. For instance, if you decide to take on a Domino’s Pizza franchise, you are allowed to use all their branding, products and sales processes and essentially operate as one of their outlets although you are a business owner in your own right.

To do this, of course, you need to invest your own money in the business. How much will depend on the franchise opportunity being offered. In return, you get access to support and the supplies you need to run the business successfully, as well as ongoing training to develop your entrepreneurial skills.

People choose to take on a franchise because there is less risk compared to starting a business from the ground up. You are involved with a brand that already has a track record and has shown its potential to succeed. There is normally an upfront cost to pay and then ongoing payments for things such as stock as well as employee wages to cover. Some budding entrepreneurs use running a franchise as a stepping stone to finally developing their own business idea.

Some of the most popular franchise opportunities today come through easily recognisable household names. These include fast food companies such as KFC and Pizza Hut, gym services like Premier Sport and Anytime Fitness and car hire businesses like Europcar. But it’s not just big names that are involved in franchising. There are literally hundreds of franchise opportunities available across a range of different industries, companies with a proven track record who are now looking to expand.

Taking on a franchise is, like any business development, a pretty big undertaking even if it does have less risk associated with it. It’s not just the initial investment in the franchise but a case of choosing the right fit which works for you as an individual. Most franchisees look for people with the potential to expand their brand – they are often willing to give you the training and support you need as long as you meet their profile.

It’s not simply a question of finding entrepreneurs who have the money to invest. After all, there is a brand and a reputation to protect so franchisors want someone coming on board who is more likely to succeed than not. In other words, they want a business owner who will enhance their reputation, not damage it.

The Franchise Professionals have an ILM recognised seminar specifically designed to enable you to find out more about becoming a business owner as a franchisee. click her to find out more

Can you earn your current corporate salary from day one of starting a business?

Something that I seem to come up against all the time is people coming out of corporate employment and want to be their own boss but still earn their corporate salary.

 

So, is that even possible? the answer is yes of course it is. However, you are going to need to have pretty deep pockets to earn a big salary from day one.  Let’s say you earn 100k now and you want to earn that by starting your own business, the best way to start is by buying an existing one. This then gives you a head start by already having customers and cash flow from day one.

 

Now that doesn’t have to be a franchise, it can be a stand-alone business, however we all know the benefits of buying a franchise!! especially when you are coming out of a corporate environment. So what better way to buy a business than to buy a franchise resale. Not just an existing business with customers and cash flow from day one but the support, knowledge & expertise of a franchisor who knows how to grow a business quickly.

 

A big myth that I’d like to dispel here and now is that franchise Resales are failing businesses, it’s not true, like any business franchises can and do fail, but there are so many other reasons for selling any business including a franchise.

 

So back to my main point; if you want a business that will earn you 100k, then you really need to be looking at the purchase price and the profit margin. There is no easy answer to this, it’s not easy to say what the profit margins should be because different sectors and even businesses in the same sector will vary because the overheads and the costs of sales will vary.

 

So actually, you might need to invest 800k in a business to earn 100k. You need to do your due diligence on the business to find out what it’s making.   On the point of due diligence, it’s worth pointing our here that people tend to wake up in the mornings and decide to sell their business with very little preparation. The accounts might look bad, because they have employed a good accountant to keep their tax liability down.  So, you might only need a business that is £300k. Are you catching my drift?

 

We all know a business is worth what someone is prepared to pay for it. So, you want to earn your 100k? you have come out of the corporate world with a nice pay off or have some savings and you have £30k cash to spend.  What do you do? A bank could lend up to 70% depending on the Brand and your individual credit rating. So, with 30k cash, the bank will lend you 70k, you have to take into account working capital and any extra fees a franchisor will charge on top of the business selling price. So based on what I have said about profit margins that means you will have an income of around 25-33k in your first year. So ask yourself, do I need to earn £100k in the beginning or will a lower income suffice to begin with if it gives you a better work life balance? of course this is a guesstimate and not based on anything in particular, but I hope it’s given you some quick food for thought when you are looking at the earnings aspect of buying a business.

Michael

The Advantages of Attending a Franchise Event

The Advantages of Attending a Franchise Event

Whether you are thinking of investing in a franchise or are running one already, attending a franchise event can be a great way of meeting like-minded people, getting to know your subject better and exploring new and exciting opportunities.

  1. You Get to Talk to the Experts

You can get all the advice in the world but if it doesn’t come from the experts, how much use is it? At franchise exhibitions, you can be sure that the people you are talking to are all running successful, profitable franchises. At the bigger events like the bfa exhibitions you can meet a range of experts from all sectors, across all industries and get the right information you need to make more informed decisions.

  1. Franchise Clinics

Franchise events generally involve walk-in clinics where you can get specific advice about how to go about investing as well as how to get involved with the best franchise. That can mean getting the heads up on things like financing, choosing the right franchise that fits your skill set and the pitfalls to avoid if you want to be successful.

  1. Seminars and Real Life Experience

Franchise events also hold seminars on specific issues relating to the industry, all of which can be very useful to the budding franchisee. You get to listen to real-life stories that can help build your confidence and point you in the right direction. With guest speakers who are at the top of their game, you also get the opportunity to quiz them about all aspects of investing in a franchise.

  1. Learn About the Latest Developments

Whether it’s help with funding or finding out what’s hot and what’s not, a visit to a franchise event can help you discover a whole lot of information you can’t find anywhere else. Like most industries, franchising doesn’t stand still and there are always innovations and new ways of thinking coming to the fore. If you want to keep your finger on the pulse of what’s happening, then these are the events to attend.

  1. A Great Place to Network

Not only are there plenty of experts at a franchise exhibition, you’ll be able to talk with and get to know other people who are thinking about investing. These can be individuals from all walks of life and with a variety of interests who can help you make up your mind which direction you are going to take.

For those offering a franchise, an event such as this also provides the opportunity to meet and get to know potential high quality franchisees. It’s an opportunity for them to show why they think their brand is suitable for investing in and what potential franchisees can get out of a partnership with them.

The next big one, the National Franchise Exhibition at the NEC in Birmingham, starts on 30th September and runs through to 1st October 2016. All the exhibitors are quality accredited franchise brands and there are some big names amongst them, including McDonalds.

Why people buy from brands?

Why People Buy from Brands

One of the major advantages of taking on a franchise is that you have a readymade brand to work with. There are a number of reasons why this makes sense, not least the availability of a proven product and, hopefully, all the support you need when you decide to come on board.

But why to do people buy from brands in the first place? Here are just a few reasons:

Peace of Mind

People like to be sure that they are getting the right product or service for them. A well-known brand comes with a reputation for delivering what is required, wherever it’s bought in the world. Peace of mind can’t be underestimated when it comes to people’s buying behaviour. That doesn’t mean they aren’t prepared to look at new products and services on the market but they will be more likely to choose a brand they recognise when they want a specific outcome, particularly at short notice.

Quality Guarantee

Along with peace of mind, is the fact that a settled brand provides the quality that customers are looking for. Whether that’s a cereal that always tastes good when you pour on the milk or a car that brings more miles per gallon and comfort. Quality products, fast delivery and strong customer services are all part of those brands that have strong core values. This leads to loyalty amongst advocates and is an essential part of the emotional attachment to chosen brands.

Value Added Extras

People may choose a brand because of its value added extras, the things that competitors don’t deliver or don’t deliver as well. A prime example would be Apple iPhones that not only give customers a recognised design and feel to their products but also extras such as quality app, music and media downloads.

Reflecting Values

Brands work best for customers when their core values match each other. So, for instance, if one of your key concerns is the environment and climate change, you are more likely to opt for a brand that has sustainable working practices and has made key commitments to reducing their impact on the world around us. If you are concerned with good, healthy eating at a low cost then you might be attracted to a supermarket brand that has a wide range of fresh vegetables that are organically produced at a price you can easily afford as well as ethically sourced.

Sharing and Social Acceptance

People like to fit in with other people who share their world view. That’s why demographics are so important when a product is being marketed to the wider world. The brand will have a specific customer in mind but those same customers will want to fit in with their peers as well. So clothing brands become popular amongst certain types of young adults, who want to maintain their standing amongst peers, and all subcultures develop their own trends that brands can connect with.

The major factor in brand development is making that big emotional connection with consumers. Once people feel something for a product or service then they are more likely to use it again and again. Don’t forget that each of us has our own brand, good or bad, as well. A computer geek may well favour a brand that is pushing the boundaries of tech rather than one that produces the same old product each time.

People buy from brands because they fulfil their core needs and wants and if you can find what appeals to your chosen demographic and deliver it in spades, then you have a head start over your nearest competitors. When it comes to buying a franchise, this aspect of business development is already in place.