Even if you’re long away from selling now, coming up with plan on how and when to sell your franchise can help you decide what steps you need to take for you to truly cash out when that day comes.
One of the biggest strengths of franchising is starting a business that already comes with branding, operations and a structure in place for you to hit the ground running and build up your business from there. Plus, there is always room to invest in additional franchises to ignite your entrepreneurial spirit. All of this culminates in a vast business opportunity that empowers the franchisee to decide how much they want to grow, and how fast they want to it. This means over time you could be looking at a great investment that you can either sell as a whole or, if you’re a multi-territory owner, you can build up and sell parts of your business as you go to give you lump sums at different intervals.
Your retirement fund awaits
Whatever way you look at it, or whatever, strategy you take to managing your franchises, you are in the driving seat to determine the value of your businesses and to decide when to sell. For many, business growth is about the long-term gain of creating their own retirement fund. This can be achieved through careful financial planning – work out what you want your retirement to look like. Whether you’re looking to retire early, go travelling, downsize, spend more time with your family or whatever else post-career life has in store for you, this is your starting point for determining how much money you will need to have to make it happen, and how soon you can get there. It could be worth enlisting the support of a financial advisor to work this out with you.
Develop a legacy
For many business owners, selling their business on is about more than just the financials. After spending time, maybe even decades, growing your business, it can be hard to say goodbye, and you’ll likely want to ensure you sell it on to the right owner who will carry your hard work and legacy forward.
At Stagecoach Performing Arts, the UK’s leading part-time performing arts school franchise, there are many instances of family connections between franchisees, including territories being sold onto franchisees’ children. And, as a children’s service, there are also a huge number of former students and teachers becoming franchisees and continuing the legacies of their Principals. One such case is that of Jaye Lawrence who, after being both a student and teacher at Stagecoach Bridgend and Cowbridge, is now leading it as its franchisee and Principal.
For Jaye, making the choice to carry on the Stagecoach legacy set out by her former Principal and teachers was an easy one. She says, “Stagecoach has always been central to my journey. The teachers there inspired me so much that, after graduating from university, I was thrilled to return and teach at the same place that first sparked my passion […] So, when the chance to become Principal and take over the business came up, it felt like a natural next step. Stagecoach has always been my dream.”
Lean on the network
If you don’t have a family or team member to pass your business onto, take your fellow franchisees into consideration. Do you have other franchisees operating near you who would be interested in expanding?
This is also a good conversation topic to have with your franchisor as they might be aware of other franchisees who could be open to purchasing your territory. They could also help advise you on your exit plans, even if they aren’t right round the corner for you.
Ultimately, wherever you are in your franchise journey, whether you’ve just signed the dotted line or you’re several years into your career, it’s never a bad time to think about your exit strategy and what your post-franchisee life holds. With the right planning in place, your business can not only be a gateway in your dream career but also an investment in your future too.
This article comes courtesy of Stagecoach Performing Arts, a franchise that operates part-time performing arts classes for children and young people across the UK, and internationally.
