If the franchisor turns down the opportunity, get the refusal in writing. If you don't, a potential buyer may back out from concern that the franchisor will claim you didn't honor its option later on. The more years left on the franchise agreement, the more valuable it will be, Seid says. That's because the new owner may have to pay higher fees and royalties when he or she renegotiates the agreement. Transfer costs may also be involved.
Many franchise agreements require new owners to refurbish an outlet.
If yours does, buyers will try to negotiate a lower price to compensate. If your franchisor doesn't have such a requirement, make sure the point is in writing to reassure potential buyers and strengthen your hand in price negotiations. Whether there's a refurbishment requirement or not, you'll get a better price if you give the place a thorough cleaning, fresh paint job, and other minor cosmetic improvements. If you need new equipment, consider purchasing it before you put the franchise up for sale, and make sure you have a good staff. As with any business sale, make sure you have good records and clean accounts.