Up and Coming Weekly is a weekly publication in Fayetteville, NC and Fort Bragg, NC area offering local news, views, arts, entertainment and community event and business information.
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WWW.UPANDCOMINGWEEKLY.COM SEPTEMBER 8-14, 2021 UCW 17 THOMAS KELSEY, Transworld Business Advisors of Fayetteville. Comments? tkelsey@tworld.com A broker provides valuable assistance when reselling a franchise by THOMAS KELSEY ere are many benefits to fran- chising your business or becoming a franchise owner. However, one does not often hear about the next step: reselling a franchise. As an entre- preneur, it is not uncommon to be satisfied with accomplishing one goal while constantly looking for new chal- lenges. Your franchise business could have been a passion project, but your time to start your next project has ar- rived. e only problem is, where do you start? Here are six things to know when reselling a franchise. Contact Your Franchisor e first step is to call your franchi- sor — there is no reason to keep your desire to resell a secret. During this step, you may ask them a series of questions: a) What are the transfer fees when I sell the franchise? b) What qualifications do I need to look for when choosing a buyer for the franchise resale? c) What rules of thumb do you use to value my franchise? In some cases, there are no fees, but when there are, it can cost anywhere from $1,000 to $30,000 to transfer ownership of the franchise. Speaking of the transfer, the next buyer must meet certain qualifications approved by the franchisor before a sale and transfer can be made. ese qualifications often relate to credit score, net worth and experi- ences. is conversation is key before beginning the resale process. Review the Agreement It is important to review your fran- chise agreement. Transfer fees and other specifications will be outlined, which are important to note for future negotiations. All of your questions should be answered at this stage. Any further inquiries can be clarified by your business broker. Prepare for the Sale Like any other business, your fran- chise needs a business valuation. A broker can assist you in getting your finances in order and determining the value of your business. Once com- pleted, you can find a competitive, but accurate listing price. Not to mention, financial documents will be in ques- tion during the sale, so being more organized will not only be beneficial, but will prepare you to answer all of the buyer's questions. Comprehensive Business Analysis It is important to understand the state of your business. Not only financially, but also the morale of your employees and the intangibles like customer loyalty and goodwill. Being a part of a franchise means your reputation precedes you, however, the success of your individual franchise can be determined by attributes like location and customer retention. is, along with other aspects of your business will be carefully analyzed by your broker to help you prepare for the listing. Negotiations with a Non-Disclo- sure Agreement e moment you are ready to list your franchise for sale, it is important to understand the value of anonymity. For one, you do not want competitors or employees to know you are selling your franchise. Your broker should prepare a non-disclosure agreement for all participating parties to protect you from leaked proprietary informa- tion. In addition, a sale might scare your staff into quitting, employees fear that when management changes their jobs could be in jeopardy. An NDA is vital for a successful resale. Close the Deal After sifting through the offers, you may find yourself moments from clos- ing a deal. At this point, your franchi- sor has approved the buyer and you are ready to transfer ownership to the next franchisee. Your business broker will help sort out the legal documents and even serve as a neutral location for signatures and deal closures. Although you own a franchise busi- ness, a resale — after a certain point — is much like selling any small busi- ness. e key is to sort out financial documents, list at a competitive price and have the guidance of a broker to find the right buyer. BUSINESS & FINANCE 1 ANNE WILSON My Jesus 2 LAUREN DAIGLE Hold On To Me 3 EVAN CRAFT, DANNY GOKEY Be Alright 4 CASTING CROWNS Scars In Heaven 5 ELEVATION WORSHIP Graves Into Gardens 6 PHIL WICKHAM Battle Belongs 7 CROWDER Good God Almighty 8 CAIN Yes He Can 9 CECE WINANS Believe For It 10 PHIL WICKHAM House Of The Lord