Franchise Officer - Resale frequently asked questions

Frequently Asked Questions

Franchise Resale Assistance

Q. How Much Is My Business Worth?

Business Valuation Formulas:

Business Description	General Formula
Very well established business with strong market position and cash flow showing exceptional profits that does not require management with special skills	8 to 10 x’s current profits
Established business with better than average market position, facing common competitive pressures, experiencing above average cash flows and profits but requiring continual involvement from skilled management	5 to 7 x’s current profits
Somewhat established business with no substantial competitive advantages, highly competitive marketplace, not many hard assets, and highly dependent on management’s involvement	2 to 4 x’s current profits
A small service type business with consistent but limited potential, cash flows and profits, where owner is the only or one of the only professional service providers	1 to 2 x’s current profits

*These are only guidelines. FranchiseOfficer recommends that every business seller obtain a professional business valuation.

Q. How Will FranchiseOfficer Help Me Know What My Business Is Worth?

We will put you in touch with top notch business valuation professionals who will determine the true worth of your business ensuring that you get the most for your business when it sells.

Q. What Are Your Requirements For Selling A Franchise Business?

We require a business to have an operating history of at least 3 years and have a minimum value of $150K.

Q. How Does FranchiseOfficer's Group Of Professionals Find Business Buyers?

We promote businesses for sale through multiple vehicles such as search engines and business for sale directories. Some of the vehicles that we employ include:

Q. How Long Is The Contract When Listing My Business For Sale With FranchiseOfficer?

Our contract is flexible and only a 6 month agreement. We are so confident in our abilities that our goal is to sell your business within 90 days but in the event that we cannot sell it in under 90 days, we are almost certain that we will have an offer for your business within 6 months.

Q. How Do You Pre-Qualify A Buyer?

Every buyer must complete a qualifying questionnaire that covers many details about their financial means.

Q. Does FranchiseOfficer “Sell” Businesses?

No. We act as intermediaries to business sellers and buyers. Our role is to find and qualify buyers for your business through our vast network and partner brokerages. We do not know your business like you do and there is no better person to discuss and negotiate your business sale than you.

Q. Do You Provide Buyer Financing?

Yes. We can assist and pre-qualify buyers for your business through our subsidiary company, Franchise Financiers. We can help pre-qualify buyers and help them secure financing for the purchase. Franchise Financiers has been offering financing to franchise businesses for years.

Q. How Does FranchiseOfficer And Its Group Of Professionals Ensure Confidentiality?

We have the highest standards for maintaining privacy and security. Your business for sale will be listed in a blind manner that will outline all the important selling points and facts about your business while maintaining the business’s anonymity. We also have every potential buyer sign a confidentiality agreement prior to the exchange of any information that would disclose the identity of the business for sale.

Q. Will I Need My Franchisor’s Consent Prior To Selling My Business?

Yes. Most franchisors must approve the new buyer prior to the sale being consummated. Additionally, some franchise agreements include franchisor buyback or right of first refusal clauses. It is important to verify these provisions within your franchise agreement prior to proceeding with the sale of your franchise. If there are no such sales restrictions within your agreement, advising your franchisor of your intentions to sell should be done at the time you receive a letter of intent to purchase from a buyer. Your franchisor will then require an application from the potential buyer. Most franchisors will not unreasonably withhold approval for the sale of a franchise but do want to ensure that the buyer meets the franchisor’s qualifications.

Q. When Is FranchiseOfficer Compensated For Its Services?

We operate on a commission only basis and do not require any upfront fees or retainers. In the event of your business being sold, you would pay a percentage of the net sale amount of the business to one of our partner brokerage firms. We will share in the fees paid to our partner brokerage firm for our services.

Q. What’s The Next Step That I Should Take With FranchiseOfficer?

Contact us today to begin preparing to sell your business. One of our professionals will be glad to help you throughout the process.