28: When Should You Consider Selling Your Franchise?

<p>In this episode, I cover some of the things you’ll need to think about if you’re considering selling your franchise. I’ll talk about pinpointing a realistic value, reasons why you and others may consider selling, as well as alternatives to selling your franchise. There is always a solution—listen to find out what that could be!</p> <h2>Outline of This Episode</h2> <ul> <li>[1:20] Selling your franchise</li> <li>[2:05] Selling for cash-flow</li> <li>[4:55] Most people buy for strategic reasons</li> <li>[5:55] Selling for risk mitigation </li> <li>[6:30] A life-changing negative event</li> <li>[10:05] Would you rather return to a 9 to 5?</li> <li>[14:45] How to start discussions if you want to sell</li> <li>[17:00] Learn how to see a buyer’s perspective</li> <li>[18:50] What are your options if there isn’t a buyer?</li> <li>[21:55] Create a partnership from day one</li> </ul> <h2>The best reason to consider selling your franchise? <em>Cash in on your equity. </em></h2> <p><strong><em>This is one of the best reasons to sell a franchise</em></strong>. If you’re able to take a struggling franchise, turn it around, then sell it for a profit—it’s a win. If you currently own a business and are ready to let it go for another opportunity, it's the best-case scenario.</p> <p>I’ll let you in on my #1 strategy when you’re selling a business: sell your business to <em>start a new one</em>. Take the profit and invest it towards purchasing your next franchise. I try and do this every year to help mitigate the tax burden associated with making a profit. </p> <p>It takes strategy and learning how to listen to your gut. Listen as I talk in-depth about this strategy.</p> <h2>Why do seller’s sell?</h2> <p>If you’re in the market to buy, this is the burning question in the back of your mind. You have to do your own research, but here are some of the biggest reasons:</p> <p><strong><em>They’re trying to mitigate risk and are ready to slow down and/or downsize. </em></strong></p> <p><strong><em>A life-changing negative event happens