Selling franchises allows a business owner to rapidly expand a business with a proven business model at a fraction of the price of a similar expansion of company owned locations. Franchises are sold in a wide range of industries, so there is more than likely a market for franchises of the business you are already operating. Selling franchises requires the seller to comply with very stringent federal and state requirements and requires a significant capital investment.
The steps usually required to sell a franchise include:
Document Successful Business Practices
If you are successfully running a business, you will need to distill the policies and procedures that make your business successful into a form you can teach to those who will ultimately purchase franchises from you.
Meet an Attorney, Accountant and Franchise Consultant
After defining and reducing to writing the policies and procedures that make your business successful, meet with an attorney and a franchise consultant to help you, as you will need both professionals. The franchise consultant should have experience with franchises in your industry.
Preparation of Franchise Operations Materials
Your franchise consultant will take your business know-how and reduce the information into the operations manuals you will use to educate those who purchase your franchises as to how to successfully operate a franchise of your business. The franchise consultant will also be an indispensable business coach to you throughout the franchising process.
Preparation of Disclosure Documents
An attorney should prepare and file the disclosure documents you will need to legally offer franchises for sale. These documents are not only essential for compliance with government regulations, but the documents also act to protect the franchisor against litigation by franchisees. An accountant should prepare business financials for disclosure to regulatory agencies and prospective franchisees.
Where to Start
Contact San Diego Corporate Law for a consultation, to discuss your current business situation, and to receive personalized suggestions for your business situation.