An established franchise business can be a great business to buy. As opposed to starting a new business, they offer a number of benefits to the owner. Some of these are immediate favorable name recognition for the brand, a system for operating a business, and training and support. When selling the business, there are some potential roadblocks that the buyer and seller should be aware of in order to avoid them and have a smoother sale.Read More
BayState Business Brokers Blog
We’ve sold a number of franchised businesses. It’s not unusual that the owner lists it with us after having listed it for sale with the franchisor. Maybe some franchisors successfully resell their franchises, but our experience is that this is the exception. If you give it some thought, the reason is apparent. Think about who will actually sell the franchise – probably a local salesperson for the franchisor. They usually get compensated based on total revenues of the franchise in their area. It is not in their best interests to resell an existing franchise. It is hard to find qualified buyers for the franchise. When they have a buyer
who is interested in being a franchisee, they want them to open a new location to increase revenues. If they sell them an existing franchise, they just trade dollars.