Your Franchise Resale: A Step-by-Step Guide

Ready to transition to the next chapter of your life? Whether you want to capitalize on your success or explore something new, this guide will help you confidently prepare your franchise for sale.


Step 1: Know Your Franchise and Your “Why”

Before connecting with buyers, it’s essential to understand what makes your franchise appealing. Think about the brand’s strengths, its target customers, and the franchisor’s ongoing support.

Gather essential documents like financial statements, marketing materials, and any awards or recognitions to present a complete picture of your business’s value.

Next, identify and frame your reason for selling in a positive light. Buyers want to feel confident in your decision. Some examples:

  • Retirement: Passing the torch to the next entrepreneur.
  • Lifestyle Change: Seeking more flexibility or relocating.
  • New Opportunity: Pursuing a different career or venture.
  • Undercapitalization: The business has growth potential but needs expansion capital.


Step 2: Pricing Your Business

A fair asking price starts with understanding your financials. Calculate your SDE (Seller’s Discretionary Earnings) — the total financial benefit you derive from the business.

👉 Download the SDE Worksheet to get started.

Service franchises with low or no profit may require creative pricing strategies. While average pricing multiples from platforms like BizBuySell can provide a general benchmark, the following factors often carry more weight:

  • Growth Potential: Highlight expansion opportunities.
  • Turnkey Operations: Stress the ready-to-run setup.
  • Franchise Support: Emphasize the franchisor’s training and resources.

Setting a competitive price while focusing on these strengths can help attract buyers, even for businesses with limited profitability.

👉 Learn more about pricing strategies with BizBuySell’s How to Value a Business.


Step 3: Prepare to Present Your Opportunity

Create a brief, compelling Sales Memorandum to showcase your business. Highlight key points like:

  • Franchise strengths and growth opportunities
  • A financial summary
  • The asking price

👉 Download the Sales Memorandum Template and Sample to guide you.


Step 4: Engaging with Buyers

When it’s time to meet buyers, here’s how to make a strong impression:

  • Communicate Clearly: Use simple language and be concise in emails and calls.
  • Protect Confidentiality: Request a signed NDA before sharing sensitive details.
  • Be Transparent: Share the business’s strengths and opportunities honestly.


Step 5: Transitioning Ownership

Your Resale Developer will guide you through:

  • Managing buyer interactions and negotiations
  • Handling final paperwork and the transition process

With support at every step, you’ll be ready to close the deal and move forward with confidence.

Additional Tips

  • Stay Flexible: Market conditions can affect buyer behavior, so be prepared to adjust your approach.
  • Keep Communicating: Stay in touch with your Resale Developer to fine-tune your strategy.