How Much Can You Get Selling a Franchise?
By the time you say I want to sell my business Bradbury, the first question you will have asked yourself is that on how much you can get for the business. If yours is a franchise, selling it will not be as straightforward as selling a conventional small business. You need expert help. The good news is that our team at So-Cal Business Brokers is here to help. We have helped sell all manner of franchises from selling a single branch to selling the entire franchise. In this post, however, we shall be looking at how much you can get for your franchise.
Average cost
Needless to say, the cost of a business is affected by many factors. The main factors are its location, industry, size and its success. The cost of selling your franchise will mostly depend on the type of your business and the reputation of the franchise brand. On average, the cost of selling a franchise ranges from $10,000 to over $5 million. Most of the franchises we sell have a price range of between $50,000 and $200,000. If you want to sell my business Bradbury, we encourage you to contact us right away. Our team will offer a complimentary business valuation and advice you on the type of sale to consider. We have years of experience selling franchises of all sizes.
Franchise fee
Unlike selling a normal business, selling a franchise includes a franchise fee. This is a one-time entry price paid by the buyer to use your brand, operating system and to get ongoing support in training, management, marketing and more. Our role here is to help you get the best deal when negotiating the franchise fee. On average, the franchise fee is about $20,000 to $40,000. Some franchises get up to $100,000 or more in franchise fee.
In addition to that, we ensure that terms on royalty payments are set well in advance. Royalties are about 4 to 8 percent of the gross revenues. Our team will also schedule for ongoing assessment for the joint marketing as well as advertising fund.
Finding the right buyer for your franchise is the most difficult thing to do. So-Cal Business Brokers will help find and prescreen buyers before letting them in. Our primary focus is on how much money the buyer has set aside for business acquisition. We ensure the buyer has the minimum amount of liquidity that you have set for the purchase of your franchise. We will also help you examine the net worth of the buyer.
Are you ready to sell a franchise or just need advice on this issue? Visit our website to schedule a free consultation with one of our experienced business brokers in Los Angeles.