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Selling your franchise

New franchise owners enter the market with the hope of trading profitably, and then eventually selling their franchise for good capital gain. Out of the franchise owners who do eventually sell, some fail to maximize their profit for various reasons. Some sell too quickly, some sell at the wrong time of year or wrong time during the economic cycle, some do not promote their business correctly or have it ready for sale.


If you wish to maximize your selling price, you will need to do your research and to plan well before selling.

Ask yourself: why am I selling?

It is important to sell for the right reasons – that is, don’t let objections or disagreements to policy changes made by a franchisor affect you in relation to selling your business.

Be sure: are you ready to sell?

If you want to sell be decisive, but don’t necessarily rush into selling. You must plan your sale in advance and make your business “sale ready”.

Realistically do not expect that your sale will be a quick or easy one – hopefully it will be, however the sale and acquisition of a franchise can take time. You also need to be realistic about your asking price – the truth is that buyers have choice out there in the market. In order to sell and maximize the sale price, it is necessary to plan the sale and execute your plan well.

In what ways can you sell your franchise?

There are a couple of ways in which you can sell your franchise. Firstly, your franchisor might assist in the sale process. You will need to check your franchise agreement to see what role the franchisor can play and discuss this with them. Secondly, you can advertise the business for sale privately and sell the business yourself. This can be time-consuming and you need to understand the sales process and how to deal with buyers if you hope to be successful in selling a business on your own. Thirdly, you can engage a business/franchise broker who can assist in the sale. Although there will obviously be a cost involved, you get the benefit of having an independent sales professional helping you with the process.

Make sure your sale is a success

We regularly work with franchisees selling their businesses and can assist with the planning and execution of the sale. To discuss the sale of your franchise please contact Peter McLaughlin at peterm@redchip.com.au, or phone our office on +617 3223 6100.

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