FREQUENTLY ASKED QUESTIONS
At Strategic Resale Advisors, we aim to make the franchise buying and selling process clear and straightforward. Here are answers to common questions for Franchisors, Selling Franchisees, and Buyers.
For Franchisors: Managing System Resales
Why should a Franchisor engage Strategic Resale Advisors?
Partnering with us standardizes the exit process across your system. It ensures that sales are handled professionally, confidentially, and in full compliance with your Franchise Disclosure Document (FDD). We also filter buyers, to meet or exceed your quality standards and financial requirements, saving your development team significant time.
How does Strategic Resale Advisors protect our brand integrity during a sale?
We handle all marketing confidentially and discretely. Listings are anonymous until a buyer is fully vetted and pre-qualified. Our process is designed to ensure existing operations and brand perception remain stable throughout the transition.
Does using your service cost our franchisor money?
We primarily work on a fee or commission structure paid by the selling franchisee or through a pre-negotiated franchisor arrangement. Our service acts as a value-added benefit for your franchisees, streamlining the transfer process without burdening your corporate P&L with the cost of a full in-house resale department.
For Franchisees: Ready to Sell
When is the right time to sell my franchise?
The best time is typically when your business is operating at or near its peak performance and profitability. We recommend starting the planning process 6 to 12 months before you want to exit. This allows time for financial cleanup, optimal valuation, and a smooth business transition.
How is the value of my franchise determined?
We use proprietary methods combining industry-standard valuation techniques (like Seller’s Discretionary Earnings, or SDE) with franchise specific factors like brand strength, location stability, remaining term on your franchise agreement, and current market demand for your system. Our goal is to secure the true market value.
How long does the resale process typically take?
While every sale is unique, a well-prepared, properly priced franchise typically takes 6 to 9 months from the initial listing agreement to closing. The time frame is often dependent on finding the right buyer, completing due diligence, and securing franchisor approval and financing.
Will my employees or customers know I am selling?
No. Confidentiality is paramount. We use anonymous marketing and require all potential buyers to sign strict Non-Disclosure Agreements (NDAs). Your identity and location are only revealed to a potential buyer after they are financially qualified and serious about submitting an offer.
For Buyers: Seeking Franchise Ownership
Should I buy a new franchise or a resale?
Both are great options, but a resale offers immediate revenue, an established customer base, trained staff, and verified financials, which can mean less risk and a faster path to profitability. A new franchise offers a fresh start and choice of location. We help you evaluate both options based on your risk tolerance and financial goals.
Can Strategic Resale Advisors help me find a franchise even if there are no resales available in my area?
Absolutely. If a resale isn't available, we shift to a consulting role. We help you research new franchise opportunities that align with your criteria, focusing on brands that have a strong resale market potential so that your initial investment is structured for a high-value exit down the road.
Do I have to pay Strategic Resale Advisors a fee as a buyer?
In most resale transactions, our fee is paid by the seller as a commission, similar to a real estate transaction. If we are providing specialized consulting services to help you select a new franchise opportunity, our services are often covered by the franchisor, making our expertise complimentary to you.
Ready to get settled
into your new business?
Contact an Advisor