You’ve put years of blood, sweat, & tears into building a franchise business.
Now, you’re ready to cash out
But here’s the catch: if you wait until you’re ready to sell, it’s already too late to maximize the payout.
You need to start preparing NOW.
The foundations you lay today determine the price tag tomorrow.
None of these are quick fixes or “light switches.” You can’t just turn them on at the last minute. They’re muscles that take years to build.
Following a built-to-sell plan could be the difference between walking away with okay money and life-changing money.
Put yourself in the buyer’s shoes comparing two businesses (image below)
Which one is worth more?
Built to Sell
There are two ways to operate a business: by the seat of your pants or being intentional.
As a first-time business owner, the seat of your pants is the only way you know.
But as you gain experience, you need to shift from 100% reactive to more proactive. You do this by intentionally deciding what direction to take the company. Identify the weak points from a buyer’s perspective and solve them.
Intentional in finding your replacement. Intentional in pushing your team to do better on Google or clean up your books.
Sales History
Your sales history will be one of the first things buyers look at.
If the sales chart looks like a roller coaster—huge spikes one year followed by big drops the next—this “feast or famine” pattern will raise red flags for buyers.
You might have had a stellar year or two where revenue skyrocketed but what happens if it drops by 30% the following year?
Was your success a one-hit-wonder driven by temporary factors like a big marketing push, a lucky contract, or an isolated event?
They’ll see risk, unpredictability, and potential headaches in the future.
Steady increases of 10%, 15%, or 20%+ each year signal a healthy business.
Here’s why that matters:
Buyers Love Certainty
Consistent growth makes it easier for a buyer to project future earnings and plan their return on investment.
When they see stability, they can confidently step in, knowing the business has a solid foundation.
A business with a track record of consistent growth is seen as more resilient, especially in fluctuating markets. It shows you’ve built something durable that can weather challenges without drastic swings in performance.
What’s my franchise worth?
Stay tuned for next week where I dive into how franchises are valued.
In the meantime, check out my latest video on a franchisor that just went BANKRUPT
They stole millions of dollars from customers, franchisees, and contractors!
When you’re ready, there are two ways I can help you:
If you’re looking to buy your first franchise, my team can help you find a scalable franchise. This service is 100% FREE to you.
If you already own a franchise, consider joining my exclusive community for franchisees who want to build an 8-figure business.
Cheers!
