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Five Ways, You Know When It's Time To Sell Your Franchise

Sometimes, there comes a time when you are ready to sell your franchise. Today, we will look at the five common reasons why people decide to sell their franchise. 

1. Retirement

The first and quite common reason people sell their franchise is simply retirement. Many people have gotten into a pursuit, and they've run the business for 10 to 15 years. Maybe, when they began the business, they had kids at home and in high school. Possibly, college expenses were coming up. Perhaps, they were building a business to create income and wealth for the family. 

But, 15 years later, their kids are gone, and they are on their own. The franchisees are ready to downsize. They want to sell the business because they're going to buy themselves a Winnebago or some kind of a fifth wheel and maybe travel the United States. They are moving to that point in their life where retirement is the right answer. 

The feeling of being ready for retirement is obviously when you're wanting and prepared to sell your franchise. Retirement is probably the most reasonable time to sell your business. 

2. Business Flippers

Other people sell their business because they are, by nature, flippers of businesses. There are people out there who love to buy a business, then sell it. They love to get into that occupation and spend two, three, or four years building the business, fixing it, growing it, creating value, and creating equity. Once the franchise is large and successful on all cylinders, they sell it and pull in the value they created. They pull in that equity and then find another business because that's what they consider fun and most profitable, buy a franchise, build a business, and then sell it and do it again. 

Some of these people do this with multiple businesses at the same time. It's actually quite a bit of fun and can be a lucrative endeavor if you do it correctly. 

3. Long-term Growth

The third reason why to sell your franchise could be because of long-term growth capabilities. There are times when you kind of look out across your industry and say, "Yeah, I'm just not sure that this is an industry that I want to be in long-term." Maybe the trends are moving against you. A popular example historically is Blockbuster. Once video streaming became widespread, it was soon evident people were no longer going to Blockbuster and renting videos, right? So there are certain situations where trends are moving against you.

Also, you may recall that there were travel agencies many years ago, but we don't see as many of those anymore. The internet has caused some professions to become less relevant. Although, we still see some cruise businesses out there. But even the cruise businesses are moving online as well. 

So, there could be times when you happen to be in an industry, and you think, "Yeah, I'm just not sure I want to stay here long term,” or you wonder if this is an industry that will still be rich and vibrant 15 years down the line.  If that's the case, you may want to exit that trade and move in a different direction. But, if you aren’t exactly sure, talk to other business professionals and seek out advice. You can also do a bit of research on the industry yourself. 

4. Mismatch

Another reason people sell businesses is that there's a mismatch. Say a person wants to get into an industry without understanding the workload. Perhaps, they decide to get into a business that connects with a passion, hobby, or interest. But then realized pretty quickly that the primary skills necessary to run that company are not skills that they have or not skills they want to acquire. 

It could also be that they loved the idea of the trade. For example, let’s look at owning an ice cream shop. When they got into the business, they realized that they were working evenings and weekends, destroying their lifestyle. They want to spend more time with the kids and know they made a mistake by getting into a profession that's not a good lifestyle match. So, they could be ready to sell their franchise and move onto better-suited business ventures. 

Also, you can find a mismatch in the financial piece of your market. Maybe a franchisee realized that they never really looked at the financial side of the business to say what is possible. After getting into the business, they found that the franchise wouldn’t meet their objectives financially. 

So, if you've gotten into a business and there's a mismatch between skills, lifestyle, financials, or anything like that, then sometimes it's a good idea to sell the business and let somebody else have it. A better match can take over that franchise, and then you can move on to a new business. 

5. Time for a Change

Finally, it's sometimes just time for a change. Maybe people look at their franchise business, and they may think, "Hey, I've done this for a while now, and I want to do something different.” There are also times in our life where we say, "Okay, you know, I've done this long enough. I don't want to retire, but I know I don't want to do this anymore. I want to try something different." Those kinds of thoughts can reveal when you know maybe it's time to sell your franchise and do something different.

Find The Best Platform To Sell Your Franchise

Have you found yourself considering selling your franchise? Did any of these thoughts or feelings strike a cord? Or, maybe you want to sell your franchise for other reasons. There are many resources available to help you on your journey of selling your franchise, including Franchise Resales.

We are a truly unique online platform because we only exclusively sell previously owned franchises. You want to make sure the right people see your listing, and our platform works to connect your sale to the ideal buyer. Click here to begin your listing and register with us.

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