Selling with Realistic Expectations

Franchise industry veteran David Ostrowe spent years on the corporate side with franchise brands like Church’s and Taco Bell. Then became a franchisee where he has operated such brands as Burger King, Taco Bell, and Blaze Pizza. Today, he operates three franchise companies: Blazing Partners, 180 Business Solutions, and O&M Restaurant Group.

One of the business skills Ostrowe has developed over his career is buying and selling franchise units. It takes knowledge and experience to know how to decide when to sell, what the units are worth, where the franchisor stands, and a multitude of other factors that can affect the maximization of profit when selling.

If you think selling a franchise unit may be in your future, consider this tip from someone who has been there and done that:

• Have a realistic expectation on your valuation. Talk to other franchisees and industry brokers on current values. Talk to franchise lenders on what values they are seeing. Understand the struggles a buyer may face with funding. This will directly affect the purchase price and terms.

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