RE-FRANCHISING WITH FRANSTOP
There are many reasons why a franchisor would consider selling off their corporate units (called refranchising). Some franchisors come to the conclusion that their sole focus should be on providing support for their franchisees. Others have determined that the capital investment necessary to own corporate stores is not aligned with their overall strategic plan. Still others want to use the re-franchising proceeds to pay down debt or invest in other opportunities that will make their franchise brand stronger.
Many franchisors who have re-franchised have been elated to see the performance of the business improve dramatically. Franchisee owners tend to take more care in running the business than a salaried manager who has not invested a dime of their own money in the operation.
Regardless of your motivation, selling existing units can be tricky and extremely time consuming. Partnering with Sunbelt / Franstop can mitigate many of the tremendous headaches associated with selling units that may be thousands of miles from the franchisor’s corporate office. With our global reach, Sunbelt Business Brokers can oftentimes provide a local presence and conduct grass-roots (but confidential) marketing to source the right buyer.
You can learn more about our seller services by clicking on the Sell a Business Tab on the our website homepage.
Depending on the size and scope of the re-franchising, most franchisors only pay a fee based on a successful re-sale.