Cost of selling your franchise business
Before commencing the process of selling, ensure you take into account the cost and exit fees so they can be factored into your negotiations with a prospective buyer.
The costs of selling can be considerable and include:
- business agents fees and advertising;
- landlords costs to approve the incoming franchisee and any make good costs;
- the franchisors transfer costs which may be a fixed fee (i.e. $5,000.00) or a percentage of the sale price;
- legal costs and don’t forget any CGT and GST issues may need to be considered.
By asking these questions at the earliest opportunity you may save yourself time, costs and disappointment.
Got a question to ask?
Steve Seddon - Westpac
Steve is a Senior Business Development Manager with Westpac. He specialises in the franchise sector and is on the FCA's Western Australian Committee.
Tim Kilham - Lanyon Partners
Tim is a director of Lanyon Partners Chartered Accountants and heads up the franchising area of that division.
Alan Branch - Optivance 360
Alan is an experienced consultant, commercial lawyer and franchise expert recognised for his skill in negotiating and completing business set up and expansion projects.
Vicki Prout - Sherpa Group
Vicki has been involved in the franchising sector as a Franchisor, Franchisee, and Consultant. She is currently an international consultant guiding businesses through their franchising journey.
Robert Toth - Wisewould Mahony
Robert has over 25 years of experience as a business lawyer and consultant. He writes regularly in franchise and industry journals and is a recognised leader in franchise law in Australia.