Planning the Sale of Franchise/Business be Subsequent & agile
When selling business it is often suggested to sell their business wither to heirs or family or key employee or to an outsider or to no one just winding the firm up. The reasons and moira behind every decision differs. While selling your business the ownership ratio has to be decided. Whether to retain a % of business to self, or supplement your retirement fund, make a loan to the buyers to provide an ongoing source of income, also the question of valuation should be considered. Franchisors have the right of first refusal in the franchise agreement. Communication with your franchisor early to ensure you is able to carry out your exit or transition plan as to your best advantage.
Why family? Indians have the mentality to keep or sell their business in family. Hence we see forefathers selling their inherited property to their children. Thus ownership remains in the family and business lies in the family itself. Thus providing a career opportunity to individuals in the family. Two thirds of family businesses fail or are sold out of the family after the founders leave the company. And by the third generation, just 15 percent still exist as family businesses.
Why an employee? It is seen not all employees who work in the organization know well about the activities about the company, there are very few specifically speaking just one or two of them who are known for the business to be successful, they are known for their success, they are ones without whom business can’t be thought of; the core part of all activities and events of the company. This one is none other than called the key person of the org. to whom the business can be sold. Because the key person can be trusted for conduct of business activities in manner which is expected to be.
Why outsider? Selling your baby to an outsider the list may include the franchisor itself, venture capital, private equity firms, or the existing franchisors. Selling it to an outsider can mean provision of opportunity to them, no relationship break risk involved, and other risks as well.
Why wind up? Winding up occurs when there exists no one to buy the business, hence there exists no other option rather than to close down the business.
Finally, selling of business doesn’t mean that business is affected drastically; it may also mean sale to earn the arbitrage, and move on to new projects.
Franchise fees and royalties increased by 8.8% to $1,428,000 in the second quarter fiscal 2011 as compared to $1,312,000 in the second quarter fiscal 2010. Total royalties were $1,260,000 in the second quarter fiscal 2011 as compared to $1,162,000 in the second quarter fiscal 2010; these were the statistics provided by Arabian franchisors.com thus viewing
When selling business it is often suggested to sell their business wither to heirs or family or key employee or to an outsider or to no one just winding the firm up. The reasons and moira behind every decision differs. While selling your business the ownership ratio has to be decided. Whether to retain a % of business to self, or supplement your retirement fund, make a loan to the buyers to provide an ongoing source of income, also the question of valuation should be considered. Franchisors have the right of first refusal in the franchise agreement. Communication with your franchisor early to ensure you is able to carry out your exit or transition plan as to your best advantage.
Why family? Indians have the mentality to keep or sell their business in family. Hence we see forefathers selling their inherited property to their children. Thus ownership remains in the family and business lies in the family itself. Thus providing a career opportunity to individuals in the family. Two thirds of family businesses fail or are sold out of the family after the founders leave the company. And by the third generation, just 15 percent still exist as family businesses.
Why an employee? It is seen not all employees who work in the organization know well about the activities about the company, there are very few specifically speaking just one or two of them who are known for the business to be successful, they are known for their success, they are ones without whom business can’t be thought of; the core part of all activities and events of the company. This one is none other than called the key person of the org. to whom the business can be sold. Because the key person can be trusted for conduct of business activities in manner which is expected to be.
Why outsider? Selling your baby to an outsider the list may include the franchisor itself, venture capital, private equity firms, or the existing franchisors. Selling it to an outsider can mean provision of opportunity to them, no relationship break risk involved, and other risks as well.
Why wind up? Winding up occurs when there exists no one to buy the business, hence there exists no other option rather than to close down the business.
Finally, selling of business doesn’t mean that business is affected drastically; it may also mean sale to earn the arbitrage, and move on to new projects.
Franchise fees and royalties increased by 8.8% to $1,428,000 in the second quarter fiscal 2011 as compared to $1,312,000 in the second quarter fiscal 2010. Total royalties were $1,260,000 in the second quarter fiscal 2011 as compared to $1,162,000 in the second quarter fiscal 2010; these were the statistics provided by Arabian franchisors.com thus viewing