Everyone says franchises are harder to sell.

Hi folks,

I was talking with Nick Huber on Monday, and I heard him repeat one of the classic misconceptions people have about franchising: 

“Aren’t franchises harder to sell?”

I get where the myth comes from. You don’t own the brand, there are rules, there’s a franchise agreement… all that red tape probably ties up the selling process, right?

Wrong. 

I don’t like using the word “easy” to describe any business transaction ever. But it’s often actually simpler to sell a franchise than a non-franchise business

The reasons why are pretty simple too.

Let’s dig in.

Advantage #1: Built-in buyer pool

Very few people get into franchising and only plan to buy a single business.

And as a franchisee, one of the simplest paths to growing your business is horizontal expansion — that is, buying more of the same brand. 

→ Related read: Horizontal vs vertical expansion

That means if you want to sell your franchise, you often have a built-in pool of buyers who are already trained, know the model, and (depending on density) may even know your local market. That’s a massive leg up.

And, sure, you can put up a BizBuySell listing. But a lot of the time it’s the internal marketplace of other franchisees that give you warm leads from day one.

Advantage #2: Closing is simpler

Let’s build on that first point.

There’s a reason searchers and acquisition entrepreneurs love franchises.

With a traditional business, every deal is bespoke. No two operations are the same. Integration is messy. 

In franchising, the “sameness” makes closing deals easier and faster in two ways:

1. It’s simpler to run due diligence, because you have other franchise units to compare numbers to. 

2. Both sides of the deal are often running the same systems (branding, tech stack, vendors, culture, etc), so integration is a breeze.

Advantage #3: You’re selling a system, not a hustle

Most small business buyers don’t want a blank slate. They want a cash-flowing system they can step into.

If you’ve run your franchise well, e.g. documented processes, clean books, consistent performance, you’re not just selling a territory. You’re selling:

• Proven operations

• Trained staff

• Local market share

• Ongoing brand support

That’s way more attractive than a homegrown hustle held together by duct tape and hope.

… Just don’t buy dumb

Let’s be clear: not all franchises are created equal.

Some have insane restrictions on selling. Some make it impossible to go multi-unit. Others put it in the contract that you can’t hire out management, making it basically legalized indentured servitude.

So don’t just buy the logo. 

• Read the FDD

• Talk to current owners

• Understand the transfer process

The right franchise gives you great leverage. The wrong one is a trap. 

→ Related read: My guide to reading the FDD

So there’s my argument:

Selling a good franchise is easier than selling a private business.

Thanks for reading!

Connor

P.S. Want help evaluating whether a franchise sets you up for a clean exit? That’s what I do. Book a call here and let’s start the conversation.

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