Selling a Franchise? Read This First
Posted on: February 14, 2017 by RMS Hospitality Group
As your clients are probably aware, owning and operating a franchise is a labor of love, and it’s a lucrative business. If they are considering selling their unique idea and becoming a franchisor, these tips should be considered beforehand to ensure the process runs smoothly. While many of these might be easier said than done, patience is key during this process. In addition to an iron-clad Franchise Select Insurance program, share the following information with them.
It’s important for your clients to meet with potential buyers face-to-face numerous times. Remember, selling the relationship and the personal aspect of buying into the franchise is a critical selling feature. Ensure they get the information and the support they need to make an informed decision. Be sure to dedicate a lot of time to combing through issues and answering their questions. Remember, patience is key to a big pay-off.
Offer a bigger territory. People buying an unestablished franchise system are going to be naturally reluctant. You need to give a lot more than you will for your second, third, and fourth deal. Their commitment to you is based on trust; prove your commitment to them by sweetening the pot, explains Franchise Help.
Especially for newer franchises, having legitimate partners is a great way show validity within your clients’ communities. For example, a reputable lender or a commercial real estate agent who is willing to help out in the beginning stages to ensure the franchise is successful.
Market the franchise.
Your clients can’t sell a franchise if potential buyers never hear about it. Determine which medium would be the most effective for selling a franchise, and don’t be shy about flooding the market. Think online, print, radio, and other outlets. Whatever type of advertising is in the budget should be allocated to attract as many interested buyers as possible.
Keep it local.
It’s nearly impossible to serve as someone’s support, especially with a new franchise, from hundreds or thousands of miles away. Recommend that your clients sell a franchise close to home so they can monitor the process, provide support, and periodically check in.
About RMS Hospitality Group
At RMS Hospitality Group, we strive to protect each facet of franchises like yours. For decades we have provided quality insurance solutions, business consulting, and aggressive claims management for businesses like yours. For more information about our comprehensive list of products, we invite you to contact us today at (888) 359-8390.