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What will 2018 bring?

As the year comes to an end and we reflect on the last 12 months in the franchise world it’s clear that times are changing, both in the economy and the way that we shop. The internet is playing a huge part in our decision making and buying process. Who would have thought that a company like Toys r Us could have problems with sales at Christmas? More and more we are using the internet to research then buy online, especially if it’s not something we need to touch and feel or try on.

Since Brexit was announced and article 50 triggered, there has been a dramatic slow down in growth. With businesses in most sectors reporting missing target expectations, we are seeing the slowest pace of expansion in 11 months as well as a fall in inflation and the pound dropping to an all-time low.

We believe this has had a significant effect on business in the franchise sector. We certainly have had a quiet year to date, and many franchisors have also felt that this year has been a particularly quiet one in terms of new franchisees starting a business. However, we have seen business significantly pick up in the last couple of months.

Despite the uncertainty that many feel, we have seen some fantastic businesses come to market and we are pleased to report that prospect enquiries have picked up in the later part of the year. This we feel is indicative of some exciting changes we have made within our business, we are very excited to see what 2018 will bring.

So what’s new for 2018?

We are always looking for ways to provide a better service to our clients. This year we have welcomed new members to our team as well as made changes to some job roles. We now have two relationship managers, George and Patricia, who aim to build and maintain excellent relationships with franchisors, franchisees and prospective buyers. As well as facilitate the relationship between the buyers and the franchisees and franchisors. We have a new sales support Ellie who is busy supporting the team and learning about the franchise sector. Add to all this our newly formed, dedicated marketing department, and you will understand why we feel that this has made a dramatic difference to the support that the team can give to our clients. We are very excited and eagerly looking forward to having the best year yet in 2018!

What’s new for you?

Whether you are thinking about starting your franchise in the New Year or ending your journey, one significant thing you must consider is your exit. Planning for a return on your investment (exit planning) is a crucial part of business.

For those of you who are embarking on your journey into franchising, no matter whether it is a new start or a resale, knowing what your end goal is will allow you to set targets and measure your performance. Your ability to realise a return on your investment will depend on your ability to grow the business.

For those of you who are ready to cash in your chips and realise that return on your investment in the New Year consider this,  did you have an exit plan from the start or are you only now thinking that you either want or need to sell your business? As a franchisee who has built a business, there is a personal attachment, so it’s a good idea to seek professional advice from a resale specialist who can objectively value your business.

If you think you might be ready to sell your franchise in the New Year why not book a free valuation. This can help you to see whether your business is worth what you want for it. Or, we can advise you on what to do to get your franchise in a better position to sell.    

Whatever your plans are for the New Year we wish you a healthy, wealthy and happy 2018.

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Ripe and Ready

Is your business ripe for the picking? Autumn is in full swing; the weather is changing, and we are beginning to prepare for the festivities of Christmas and New Year. As the year draws to a close we start to think about what the New Year will bring. If you are thinking about a change, possibly selling your business, why not find out how much it may be worth.

A third-party review will help you find out if your business is in a position to sell. By seeking professional advice, you can find out how much your business is worth. Not only will you have an idea on the value of your business. They will also give you advice regarding changes you may need to make, to increase your attractiveness to potential buyers and improve your chances of getting a higher price.

Before you can sell your business, you must ensure that your accounts in order. Most potential buyers will want to look over at least three years of accounts. Having this information formally laid out will show the buyer how the business is performing. The better your accounts look, the more likely you are to create a favourable impression. If nothing else a review of your accounts could highlight areas where you could improve and therefore create a more attractive opportunity.

The next step is to ensure that your business structures and processes are in place. Be sure that all your employee roles are clearly defined and that signed contracts are in place. All documentation concerning contractual arrangements should be in order, including property leases and supplier information. This shows a potential buyer that the business is organised, and gives them confidence that nothing surprising will crop up once they have purchased the business. The more organised you are the smoother the transition will be.

One of the most important factors to remember when deciding to sell is to keep growing the business. In order to achieve the best return on investment it must be in the best possible condition. It can take on average 12 to 18 months to sell, so even when it is on the market, you must keep your foot on the pedal. It is crucial to keep this in mind when deciding on the right time to go to market.

Selling a business doesn’t happen overnight. If you think in the not too distant future you might think about selling, it is important to make it’s as attractive as it can be to a potential buyer. Whether you are certain you want to sell or are just thinking about selling contact us today on 01522 246811 and we can discuss getting your business ready for market.

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Planning Your Get Away – Selling a Franchise Resale

When going away on holiday, it’s vital that you sort all the essentials. From having your travel documents ready and waiting, to packing clothes for all weathers, you need to be prepared if your trip is going to run smoothly. The same thing goes for selling your business- and particularly when you’re reselling a franchise. Whether you’re looking to retire from franchising altogether, or just want to make a fresh start with a new business, the easiest way out is to sell your franchise on to a new owner. That way, you don’t have to worry about winding down the business, or keeping one foot in running it. Instead, you’re able to ride off into the sunset, and enjoy the next stage of your life, hassle-free.

It’s not enough to simply put the franchise up for sale though, and hope that someone will come along and take it off your hands. You need to put some effort in to make the business an attractive proposition, so that buyers will be more eager to take it off your hands. By following the advice below, you’ll be able to ensure that you’re all set to kick off the selling process, so that all parties concerned- you, the seller, and the franchisor company- are happy with the way that things pan out.
First things first, you should ensure that all your bookkeeping is in order. That way, if someone wants to know just how well the franchise is doing, you will be able to give them a clear indication. If your franchise is running smoothly, then this will give you a much better chance of finding a buyer quicker. On the other hand, if your finances are in a mess, then a buyer might think that they are better off just going it alone. The bottom line is, make sure you can demonstrate in simple terms that your franchise is in a strong position, to attract as much interest as possible.

Another thing you’ll need to do is have a plan in place for your existing staff. If they are going to stay on, then this will also make the sale easier to negotiate, and will give the new owner less work to do. Instead of having to recruit and train a whole new team while learning the ropes themselves. They will be supported by an already strong team of employees who know how to run the business on a day-to-day basis. Of course, this might be tricky if, for example, the team is made up mainly of friends or relatives, who won’t want to stay on after you leave. In this case, it’s best if you frame the situation as a strong opportunity for the new owner to put their own stamp on the franchise, and run it the way that they want to.

Finally, make sure you’ve squared things with your franchisor before you formally begin the selling process. While many franchisors are happy for franchisees to pass the business on to a new owner, you will still need their approval first. They will likely also want a say in just who their new franchisee is, so that they can be sure their reputation is in safe hands. You’ll also want to be clear on their policies towards franchisees, although since you’ve already spent time running a franchise, you should already be familiar with this. Make sure you let potential buyers know just how things work in regards to the agreement with the franchisor, so that they can easily tell whether yours is the type of franchise that they are looking to get involved in.
Contact us today and plan your get away. Call us on 01522 246811 or e-mail info@franchiseresales.co.uk.

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Keeping It FResh: Would You Do It Yourself, or Call In the Experts to Sell Your Franchise?

There’s no doubt about it- reselling a franchise is tougher than it first appears. You might well have a stellar business plan and plenty of resources to pass on to your buyer, but just how do you go about finding them in the first place? Unlike selling a conventional business, the market for reselling a franchise is smaller, because many people do not always want to have to pass on a portion of their takings to the franchisor.

Selling a franchise also comes with some extra complications because it’s not technically your business that you are selling. You’ll need full cooperation from your franchisor in order to close a deal, and you’ll have to convince them that your buyer is up to the job. If you neglect this crucial point, then you could find that the deal falls through at the last minute, and you will then have to start right back at the beginning again.

What’s more, while you’re looking to resell your franchise, you will have to carry on running the business in the meantime. Naturally, that takes up a lot of time, and you might find yourself too exhausted to even contemplate hunting down a new buyer. In order to resell your franchise for the best price, you need to have it up and running at full capacity, so how will you find the time to conduct the selling process yourself?.

As you can see,  reselling a franchise can be an extremely stressful process, especially when you just want out. You will need to assess whether you have the time to run your business as well as searching for the right person to buy your franchise. If you decide to outsource the sale of your franchise you will get help through each part of the selling process. From getting an independent valuation to getting the ball rolling, to exit planning and due diligence, as well as getting the franchisor’s approval of the buyer. An external partner will aim to achieve the best deal for both sides, so that you get a fair price for your franchise and make a smooth exit from the business, and your buyer gets a franchise that’s already on a firm footing.

So, if it’s time for you to move on from your franchise to pastures new, We are here to help. With an extensive network of contacts, we make the reselling process as quick as possible. No one else in the UK offers the same level of service that we do, so you can be sure you’re making the right choice when you come to us. With connections to expert solicitors to oversee everything, we can help the whole process to run smoothly and efficiently. Don’t give yourself the extra stress of having to find a buyer yourself- thanks to Franchise Resales, you can focus on your future instead.