There may be different reasons why you are considering selling your franchise, whether it be due to your finances, wanting to take a different direction in your career, discovering an interested party, or otherwise. But regardless, you must seriously consider this before following through. Continue reading to learn how to know whether selling your franchise is a good decision and how one of the experienced franchise law attorneys at FortmanSpann, LLC can help you with this assessment.
How do I know if selling my franchise is a good decision?
First of all, you must determine if now is the right time to sell your franchise. To determine this, you may look back at your tax returns and see if you have been able to produce maximum profitability for at least two years. Otherwise, you may not be able to sell your franchise at the best price point.
In addition, to determine if now is the right time to sell, you may refer to the market conditions of the industry your franchise is in. Though it may be difficult to part ways with your franchise when it is at its peak profitability, this just may be a wise business decision.
And lastly, you should not have to make this pivotal decision alone. To help you better determine your franchise value and whether you should go through with this sale, you may want to retain the services of the following individuals:
- An accountant.
- An appraiser.
- A business broker.
- An attorney.
What else should I consider before I sell my franchise?
What many do not realize is that there are significant fees when it comes to selling your franchise. Just some of the fees that you may come across include the following:
- Your business broker’s commission.
- Your transfer fees.
- Your assignment fees.
- Your prepayment penalty.
- Your sale of business fee in your lease.
- Your transfer taxes.
- Your attorney fees.
So, you must strongly consider the above fees to determine what your net sale proceeds will be and thus whether selling is worth it.
Sometimes, it is not that a franchisee must sell their franchise, but that they need to fix their relationship with their franchisor. At FortmanSpann, LLC, we can decipher the difference. We know that it occurs far too often that a franchisor makes a franchisee feel as if it is their fault that they are struggling. But the reality of these cases is that the franchisor has given false information about the franchise and has failed to meet their obligations. And so, if you would like our sound advice, schedule your free initial consultation with us today.