March 12, 2008, 9:31 am
Tips for selling a franchise territory
Mary Sue wants to resell her Coney Beach franchise territory. Do you have tips for how Mary Sue can successfully sell her territory?
Your Answers
From Patricia, Las Vegas, NV It sounds like it's a buyers market since all you're selling is an undeveloped territory. The company I used to work for had some area franchisees re-sell their territories. To help them out, we consulted with Franchise Foundations. Their website is at http://www.franchisefoundations.com The franchise attorney there, Mr. Franchise, advised to develop the territory further before trying to sell it – which they did with very positive results. You also need to factor in any right of first refusal the franchise company has before you can resell your rights. Get good advice and planning before taking any action.
Posted By Patricia, Las Vegas, NV : December 6, 2008 1:41 pm
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Patricia and Mr. Franchise are right. Before selling an undeveloped territory, try to develop it with at least a couple units. This topic is referenced in the how to franchise a business page at http://www.franchisefoundations.com/franchiseabusiness.html That way you have a lot more value to sell. This should result in a much higher market price than just selling the territory in an undeveloped state.