- 1. Building AValuable FranchisePlanning For The Day You Will
Sell Glen J. Cooper, CBI, CBA, BVALPresident, Maine Business
Brokers 217 Commercial Street, Suite 401 Post Office Box 7346
Portland, Maine 04112-7346 www.MaineBusinessBrokers.com
2. How Do You Build A Valuable Franchise?5 Essential
SkillsConcentration own your place in the marketDiscrimination
focus attention on intentionOrganization work, space, time, not
peopleInnovation faster, cheaper, betterCommunication touch people
with the Wow! 4 Ways People Want the Wow!Visual - color, form,
scale, order,detail and informationEmotional experience order, feel
heard,connect with something bigger, with apurpose, morally right,
feel that whatthey do is important, bonded witha team they
loveFunctional promises fulfilledFinancial worth it integrity of
value received 3. E-Myth Definition:The E-Myth is the myth that
thosewho start businesses areentrepreneurs. Gerber saysthat,
instead, they aretechnicians suffering from anentrepreneurial
seizure. Theyknow how to work in theirbusiness, but not on it. 4. 5
Essential Leader Skills: 1) Concentration own your placein the
market. 2) Discrimination focus attentionon your intention. 3)
Organization manage work,space, and time, but not people 4)
Innovation do it faster,cheaper, and better. 5) Communication touch
peoplewith a Wow! 5. 4 Ways to Wow People:1) Visual - color, form,
scale, order, detail and information2) Emotional experience order,
feel heard, connect with something bigger, with a purpose, morally
right, feel that what they do is important, bonded with a team they
love3) Functional promises fulfilled4) Financial worth it integrity
of value received 6. How Do You Plan For the Day You Will Sell? 7.
Market Facts: Only 2% of buyer prospects ever buy! 98% never do!
Theres an 80% chance you wont sell! Only 20% sell in the first
year. Enjoy the Rollercoaster Ride! Or, hire a professional team.
8. Breakout Session Agenda: Whats my franchise worth? How do I keep
it confidential? Whats the best way to sell? How do I screen and
qualify prospects? Who should I handle the negotiation? How long is
this going to take? 9. Whats It Worth? 10. Whats It Worth? Who
might buy it? Why would they buy it? When would they buy it? What
can be financed? Is there a rule of thumb? What counts besides
profits? 11. Who might buy it? An in-experienced outsider? An
experienced outsider? Another franchisee? 12. Why would they buy
it? A job? A lifestyle? A good investment? 13. When would they buy
it? Tomorrow? In a year or two? When it makes money? 14. What can
be financed? Tangible assets being sold? Buyers tangible assets?
Intangible assets? 15. Pricing rule of thumb? 1.5 3.5 SDE? 60% of
annual revenues? +/- 50 other factors? 16. What counts besides
profits? Location & market dominance? People & systems?
Stability & good books? Terms of sale? 17. Who Should I Tell?
18. Who Should I Tell? Who knows already? Why keep it a secret? I
have to give them what?! Why do buyers need to know so much? What
shouldnt I tell them? What if my people find out? 19. Who knows
already? Owners family & friends? Owners advisors? Key
employees? 20. Why keep it a secret? Key employees will leave?
Referral sources dry up? Customers? Shopworn factor. 21. I have to
give them what!? Formal memorandum? Due diligence help? Face time!
22. Why do they need so much? Theyre not you! Buyer advisors
insist! They were bornat night, butnot last night! 23. What
shouldnt I tell them? Personal/employee details! Competitive
secrets! What youredoing wrong! 24. What if my people find out?
Damage control plan? Marketing plan change? Timing change?
Price/termschange? 25. How Do I Tell the Story? 26. How Do I Tell
The Story? How should I present it? Where should I advertise? What
should the ads say? How do I give buyers a tour? How should I
answerquestions? How do I follow-up? 27. How should I present it?
Disclosure Document (FDD)? Offering summary? Narrative history?
Financials? 28. Where should I advertise? With the franchise? At
least 6 major multi-lists? Print media? Direct mail? 29. What
should the ads say? Specific for response? Include, dont exclude?
Active voice? Contact us today! 30. How do I give a tour? Set an
agenda? Start with the end in mind? Plan rest stops? Plan your
follow-up? 31. How to answer questions? Rephrase questions? Answer
only what is asked? Stay on message! Ask yourOWNquestions? 32. How
do I follow-up? Create the expectation? Dont let time go by? Always
add news? Create &follow a process? 33. How Do I Screen Buyers?
34. How Do I Screen Buyers? How do I handle buyer inquiries? How do
I know theyre qualified? What should I expect from them? What
should I give them? How much time should I give them? When do I ask
for the offer? 35. How do I handle inquiries?Expect 50/1
Inquirers/Buyer?Get ready for them?Make inquiring easy?Make
qualifying hard? 36. How do I qualify them?Ask for
confidentiality?Ask for financials?Ask for rsum?Ask about
timing?Follow franchise! 37. What should I expect?Expect
disclosure?Contact Franchisor?Expect show up?Expect
questions?Expect indecision? 38. What should I give them? Narrative
Description? Financial Data? Equipment List? Photos? Tour
&Meeting? 39. How much time to give? Two hour initial meeting?
Two hour tour & 2nd meeting? Many hours of Q&A? 6 months to
decide? 40. When do I ask for the offer? Maybe you shouldnt? Before
due diligence? When you said you would? According to yourset
agenda? 41. What Do I Do Next? How do I handle offers? When do I
call my attorney? When do I call my CPA? How long is this going to
take? When do I tell my people? What if the buyer backs out? 42.
How do I handle offers? Organize your team? Time is of the essence?
Verbal offers at first? Letter of intent? P&S at the end. 43.
When do I call my attorney? Before the offer? After an offer? After
acceptance? Before closing? After closing? 44. When do I call my
CPA? Before I set the price? Before the offering? Before an offer?
After an offer? Before taxes are due? 45. How long is this process?
12 months to get ready? 24 months on the market? 6 months
negotiating? 4 months closing? 3 months in transition? 46. When do
I tell my people? Before you offer it to others? After youre on the
market? When you accept an offer? After P&S signed? After
closing? 47. What if buyer backs out? Try this buyer one more time?
Put it back on the market? Pull it off the market? Breathe,
re-group & re-think? Close & go home? 48. How Do You Build
A Valuable Franchise?5 Essential SkillsConcentration own your
placeDiscrimination focus attention on intentionOrganization work,
space, time, not peopleInnovation faster, cheaper,
betterCommunication touch people with the Wow! 4 Ways People Want
the Wow!Visual - color, form, scale, order,detail and
informationEmotional experience order, feel heard,connect with
something bigger, with apurpose, morally right, feel that whatthey
do is important, bonded witha team they loveFunctional promises
fulfilledFinancial worth it integrity of value received 49. How Do
You Plan For the Day You Will Sell? 50. Whats It Worth? 51. Who
Should I Tell? 52. How Do I Tell the Story? 53. How Do I Screen
Buyers?