A question that often comes up: “Can I sell my franchise without the franchisor’s approval?”

The short answer is no. Every franchisor must approve a buyer before you can close a deal. However, that doesn’t mean that listing with corporate is your only means to find buyers.

A franchisor will tell you that all the buyers in their database are approved by corporate. True; however, it doesn’t account for the thousands of buyers who will very likely qualify to submit an offer. All franchisors make expansion their priority, so, given a choice between selling a new unit and reselling an existing store, they will prioritize the new store every time. That makes it more challenging for sellers to find the right buyers and close on their timeline.

Here’s how to identify the right system to work for you:

A national database of thousands of motivated buyers looking for a business just like yours. Franchise sales teams often work within a single region, so they may have strong contacts in New England but not in Texas. They may not think to seek out or share leads from different parts of the country.

Someone who understands your business and who will make a great buyer.  Whether vetted by corporate or identified elsewhere, the right broker will stay in contact with them to let them know when the next opportunity comes up. There should be a shared goal: a great offer that can close quickly. They will also not waste your time with people who don’t have the financial means or the motivation to get a deal done.

A process that will give you the opportunity to evaluate several offers and choose the one that’s right for you. If you have a profitable unit, you’re almost certain to get several full-price offers for your business. When a seller has four qualified buyers competing for their business, they can be assured they’re getting the best terms and the highest possible offer in the current market. They can trust they’re dealing with buyers who want a quick, clean closing because they know the seller has plenty of options.

Keep communication flowing so the deal progresses. We understand that sellers are busy running their business, which makes it hard to respond to every inquiry and request for information. Most owners have never sold a business before. The right broker understands how to keep a deal moving and how time and inertia can kill deals. They’ll ensure the offer is legitimate and the buyer stays engaged. If they run into issues or conflicts, they always have at least one other offer to pivot to.

Experience in selling franchises makes the diligence, negotiations, and closing quicker and more stress-free for both parties. Selling your business is a complex process, and chances are you’re doing it for the first and only time in your life. Franchise brokers do it every day.

About The Author:

Jon Franz is the founder and president of Franchise Clearly®, where he oversees transactions and works directly with franchise owners throughout the resale process. Since 2015, he has led more than $145 million in closed sales and developed proprietary technology designed to bring greater transparency and efficiency to franchise resales. Jon holds a BBA in Finance from the University of Wisconsin–Madison, an MBA in Finance from the University of Central Florida, and is a Lifetime Certified Business Intermediary® (CBI).