More on the Franchise Re-Sale System   

You know how to make money with your franchise.  Our Franchise Re-Sale System  will show you how to make your franchise more valuable.  Public Companies CEO’s have their Investment Bankers to assist them in building their company’s value.  As you probably know, building value is generally more important to these CEOs than are company earnings. Perhaps it would be beneficial for you to start paying attention to your company's value.

We want you to benefit from what we have learned since 1979 through our participation in the sale of more than two thousand (2,000) businesses.  We want to show you how to build value and wealth (in addition to making money) by applying the Wealth Creating Techniques for Private Companies that are part of  our Franchise Re-Sale System.

You might think of our Franchise Re-Sale System as your Private Company Investment Banker on a CD ROM.  The System is meant to help you make your franchise more valuable and, when the time is right, sell it to the right buyer for the most money.

You do not have to increase profits in order to increase Value  

For example: The principles outlined in the Franchise Re-Sale System helped one firm increase the value of their operation from an appraised three hundred fifty thousand dollars to a sale price of seven hundred fifty dollars in less than a year.   Incredible as it may sound their earnings and balance sheet values remained essentially the same.  That’s right - an increase in value of Four Hundred Thousand Dollars without an increase in earnings -- and to top it off, the sale was for CASH!   Our Franchise Re-Sale System should be especially valuable to you if you will be considering the sale of your business within the next few years. 

An entire chapter of the book addresses how you can increase the value of your business without having to increase profits.  Most of the value enhancing suggestions can be implemented quickly and easily with little or no cost involved.  It is not uncommon for franchise owners to double the value of their franchise in less than a year simply by using the insider secrets the Tool Kit reveals. 

We want to help you attract a buyer that will pay you the most money when you decide it’s time to sell  

One of the principles the Franchise Re-Sale System employs is based upon the reality that different buyers will pay different prices.  A franchise may be deemed worthless by one yet be worth millions to another.  Ironically, the buyer that essentially every business owner, accountant, attorney and novice broker or intermediary chooses to approach first will usually be the worst choice.  The buyer they all instinctively choose never pays a fair price and seldom will maintain confidentiality.  The book will explain how you can readily recognize and avoid this and other inappropriate buyers.

Breaching confidentiality can destroy company value if the breach causes key employees to leave for fear of loosing their job after the sale.  In other cases a breach of confidentiality will cause customers to loose confidence or allow competitors to take advantages. In essentially every case, a failure to maintain confidentiality will result in reducing value or, in extreme cases, cause the franchise to fail.

"Sell it but don't let anyone know it's for sale"

Maintaining confidentiality is extremely important if you want to get top dollar for your business.  That is why the book devotes an entire chapter on how to sell your business without anyone knowing it was for sale until after the sale is completed.  Usually employees first know the company was sold when they are introduced to the new owners the day of or the day after the closing. The book outlines the procedure to follow so you can sell your franchise quickly and quietly.

As stated above, different buyers will pay different prices.  The trick is to know how to identify the differences between the four types active in today's marketplace for operating franchises.  How do the the four types determine value?  What turns them on?  What turns them off?  Would you believe that the primary motivations to buy are not financial!  Don't misunderstand what we are saying.  Money is important but it is typically not the primary motivation to buy.  A sale occurs only when motivations are satisfied. The book examines and explains how motivations vary by type of buyer and illustrates the impact motivations and perspectives have on a buyer's perception of value.

Different buyers will pay different prices.  Only the right buyer will pay the right price.

A successful sale at the best price depends upon your ability to identify the buyer that is right for your business.  Only the right buyer will pay the right price.  Only the right buyer will have what is needed to take your business to the next level.  Only the right buyer will enhance the future prospects for your business.  I realize that this focus on the type of buyer is not your typical MBA's approach to the sale of a franchise.  It does reflect however, the hands on experience gained in selling more than 2,000 private businesses.  

Four chapters, one for each type of buyer, will describe the different motivations and perspectives that these buyers bring to their acquisition process. You will see how they determine value and how to apply this insight in positioning your franchise so as to obtain the highest and best value.  The book provides the insight and the Buyer Identification and Franchise Valuation portion of the software crunches the numbers to calculate the range of value these buyers can be predicted to pay for your business.  Examples of franchise valuations for single through multiple location franchises (size does matter) are included on the Franchise Re-Sale System Tool Kit's  CD-Rom for your review.

Should you give your Tax Returns to a prospective buyer before you have their offer?

You can safely predict that one of the first things a prospective buyer will request to see is your tax returns.  In reality, your tax returns should not be handed out until you are satisfied with several issues. For example: Are they the right type of buyer?  Do they have the skills and resources your operation requires of a new owner? How much are they willing to pay?  Will they pass your franchisor's muster? Will you have to participate in financing the sale?  How much will you receive after taxes are paid?  How much training will you be expected to provide?  How long will you be required to stay on after the sale?

How much information you should release before you have an offer is detailed in the book.  When should a prospective buyer be allowed to speak with your vendors, your major customers?  When should you provide your customer list?  How should you handle a request to interview your key employees? These and other questions regarding the release of sensitive business information is fully addressed in the book.

What information can you safely provide a prospective buyer before you have an offer?

The type and amount of initial information you should provide will vary with the size and complexity of your business.  A simple one page opportunity description might be all that is required for a single operator service franchise whereas a Prospectus or Offering Memorandum of twenty or more pages is more usual for more complex or multiple location franchises. The CD-Rom contains three sample selling documents ranging from a one page version to one with twenty plus pages. 

We realize that producing an effective information sheet or prospectus for your operation can be a daunting task.  That's why three different templates are included to make the job easy if you choose to sell your franchise on your own. To produce your company's prospectus you simply input your company information into the appropriate template provided on the CD-Rom.

All three samples:  

a) Represent the amount and kind of information that is safe for you to reveal  

b) Are comprehensive enough for a buyer to make an offer to purchase 

c) Present information in a professional format that positions you as a savvy businessperson

Is Seller Financing really necessary?  

Whether or not you decide to provide Seller Financing depends upon several factors primary of which are the quality of the buyer you attract and the price and terms offered. Our experience selling more than 2,000 private businesses indicates that business owners who offer to participate in the financing get higher prices for their businesses than do those owners who dig in their heels and insist upon an all cash deal.  You can diminish and perhaps eliminate the need for seller financing by following several common sense steps as outlined in the book. 

The Franchise Re-Sale System software not only calculates the value of your franchise by type of buyer it also calculates the probable terms of sale i.e. usual buyer's down payment, the amount of financing from outside lenders and the amount of financing you may be requested to provide.  Armed with the tips contained in the book and the calculations provided by the software you now are able to make an informed decision as to how much if any seller financing you will be willing to offer.  

The Book - "In & Out of Business. . . Happily"

The first piece in the Franchise Re-Sale System is the book, In and Out of Business. . . Happily.  Let me caution you though.  If you're looking for an academic treatise on the sales process, this is not the book.  But if you want practical, useful information based on actual experiences, I think you'll be happy with this book.  If you want to know what to do, and want to see real-world examples of how other companies have done it, you will find it all right here.  If you want a marketplace view of what goes on when an owner goes about selling a small to mid-size  business, this is the one book for you.  

Here are some of the topics covered in the book’s twenty four chapters 

• An overview of how a savvy business person sells his/her franchise

• Moves you can make to maximize your company’s value before you put it on the market

• How to sell your franchise yourself without anyone knowing it was for sale until after the sale is consummated     

• A complete and comprehensive description of the types of buyers in today’s marketplace.  Determine which type will be best for your business and pay you the most money and how to avoid the rest

• How to position your franchise to assure that you get the right price

• Expensive traps and mistakes to avoid when selling a franchise

• Types of buyers active in today’s marketplace and how they determine value

• Ten reasons why selling a franchise is different from selling essentially anything else you can imagine and how to capitalize upon the differences.

• Non financial factors that impact your franchise’s  value

• A comprehensive overview of the proper sequence of steps to the dance that ensue once you have attracted what appears to be the right buyer (For example: Tax returns are one of the first things buyers request but should be among the last items you provide) 

• Bottom line or between the lines?  How to help your buyer understand the real profitability and opportunity your business represents.

• How to increase your franchise's value without increasing declared profits

• The financial component of selling your business is made easier to understand by eliminating financial jargon and dispelling the mystery that usually surrounds business valuations

In addition, the book’s appendix provides: definitions and examples of key terms used in a buy/sell transaction; explanations and models of various ratio analyses and comparisons within your industry; and various tables such as those showing present value, monthly loan payments, future value, and balance remaining on a loan.   

As you can see, the book deals with both aspects—the personal, motivational, and operational side of the buy/sell transaction and the formulas, calculations, and number crunching critical to the financial component.  Dealing with both in the right way, you can make the best deal—a win-win situation.  

Should you not be in a position to attract the best buyer or obtain the right price at the present time, the book has an entire chapter devoted to how you can increase your franchise's’ value both short and long term  

For an overview of what is covered take a look at the Table of Contents

Case Studies
One case study illustrates the wide range of value a small business can command - and why different buyers will pay different prices.  

A young woman was approached by a party expressing an interest in acquiring her business.  The System's software predicted her buyer would be willing to pay about $164,000 for her business.  However, she could easily sell for $425,000 to a different type buyer without making any changes to her operation.  If she were to make the modest changes required to attract a third type buyer then her business would be worth $750,000. Were she able to attract a fourth type (which she was not) as an acquirer then their valuation methods would value her franchise's at about $1,250,000.

Her suitor was the type buyer who would only pay an estimated $164,000 and fortunately, she was able to end negotiations before disclosing too much confidential information.  She decided to make the few changes in her operations the Tool Kit recommended so she could then sell to the type buyer willing to pay $750,000.  Six months later she decided to sell her franchise, and because her earnings and the outlook for future profits had been enhanced, she was able to sell her franchise for $1,000,000.

With the information the Franchise Re-Sale System provides you will be able to identify the kind of buyers that will pay the best price – we want you to know the marketplace before you enter it. 

The Software - "Franchise Re-Sale System" has four components

Part One - Buyer Identification and Franchise Valuation This component has been designed to be used by the Non-Financial Entrepreneur and it is very easy to use.  Simply enter numbers into a template and the software will automatically:

• Develop a comprehensive financial analysis of your operation designed to give you a view of your company from the outside in   (Your accountant would have to charge you much more than the cost of our program for this feature alone)

• Illustrate the price and terms different types of buyers would be willing to pay today and why   

• Show how much financing you would be expected to provide and, if you were to insist upon a cash price, what an all cash price might be  

• Identify the best type of buyer to attract as well as the type(s) of buyers you should avoid.  

• Transaction Structuring Model – Allows you to compute “what if” scenarios by changing down payments, interest rates or terms etc and calculate your ROI and Fairness Testing so you can get back to the negotiating table quickly

Don't let the ease of use fool you.  This is very powerful software and an exceptional tool that is highly valued and used by MBAs, CPAs and other financial professionals all over the world. With our software you'll be able to present your business in a most professional way, which by itself, can raise the value of your business and the price you can get for it.  

It is important you understand what drives
 your company’s value and how you can control it  

Part Two - Sample Business Valuations and Transaction Structuring

The sample franchise valuations will help you as you value your own operation.  The samples  represent small, medium and large franchise operations.  Having completed valuations to review facilitates a fast track understanding of this mysterious subject.  The combination of our book and the valuation examples will help you determine and, of equal if not more importance, defend the value of your franchise.

When you sell it's not what you get but, more importantly, what you get to keep that is important.  The Transaction Structuring portion of our software makes calculating fairness and workability of a deal's structure a simple and automated process.  Make sure the franchise stays sold and that the transaction does not fail because of faulty deal structure.

Part Three - The Documents  (Important should you decide to sell on your own)

In addition to the book and Buyer Identification and Business Valuation software, Franchise Re-Sale System Tool Kit includes a Documents Pack, all of the paperwork you’ll need to complete the buy/sell/transfer process all on CD-Rom ready for your customization.  It couldn’t be simpler!

All the essential documents required to sell a business  ~ Forms, Letters, Contracts, Special Contingencies, Checklists and Closing Documents all ready to be used as is or customized by you.  All documents have been field tested in several thousand negotiations.  All documents are designed to protect you fully during and after negotiations are completed.  Click here to see a list of the documents

Documents, checklists etc. are considered uninteresting and mundane by many.  We can assure you they are vitally important in many subtle and not so subtle ways. Just having a checklist to assure that vital steps are not overlooked and costly traps are avoided is worth the cost of the program.  Plus they are all on the Franchise Re-Sale System's  CD-ROM ready to be customized by you with very little typing required.

Part Four - Sample Prospectus or Selling Document

Three sample selling documents ranging from a one page version for the smallest businesses to one with twenty pages for a somewhat complex, multi location franchise.  Knowing how your target buyer thinks and how they approach the acquisition and valuation process is like your having a spy in the enemy's camp.  It's not what they see but rather how they see it.  

Every business has its weaknesses or problem issues.  The book explains how and why these factors help you define your best buyer.  The examples will highlight how the "low spots" of your operation can be made to appear as part of the exciting opportunity your franchise represents.

Plus Services and Benefits 

Benefits:

#1.  Determine your best "Action Option"

You don't have to commit to selling by signing a listing agreement in order to get this information

The Insider Information our Franchise Re-Sale System provides puts you in a position to make informed and intelligent decisions regarding the action option that best suits your individual situation.  

Examples of typical Action Options franchise owners consider:

• Not sell – perhaps eventually just close the doors  

• Implement changes to enhance value and then sell when the time is right  

• Sell on your own – no assistance – perhaps to a buyer already in hand  

• Sell on your own using our marketing and/or coaching services   

• Sell using a broker – Commission will range between 8 to 12% of sale price.  We can assist you in locating the best qualified broker or intermediary if you choose this option   

• Other – maybe give the business to your brother in law  :-)

#2.  Free Ad on our website

We will gladly post your "Business for Sale Ad" on our website www.buysellbiz.com and others Free of Charge.  We will keep your ad on the internet until it is sold at absolutely no cost to you.

Services

#1.  Initial One to One Consultation 

Initial coaching is included as part of your purchase.  Use our toll free number to discuss valuing, value creation, selling, or buying a franchise with an experienced dealmaker.  

#2.  Coaching Program (Optional)

If  you decide you want to sell your franchise by yourself and save a broker’s commission but don't want to go it alone, we can be your coach advise you every step of the way – as much or as little as you want for a pre-agreed upon flat fee.  We will not charge you a commission.

#3.  Referral Service

You may decide you want to have a professional broker/intermediary represent you and handle all the details involved in finding a proper buyer and negotiating a transaction to a successful close, preferably one familiar with the disciplined approach outlined in the Tool Kit.  We can help you here as well.  We know the the business selling community and can introduce you to the firms best qualified to represent your size and type business. Brokers and Intermediaries who employ our methodologies will sell essentially every business they are charged to sell.

You’ll still have access to these services even if you don’t decide to sell until several years after you purchase our Business Selling System Tool Kit 

"Thank you for authoring such a valuable tool for franchise owners"