Freedom Advisors Group, LLC d/b/a/ VR Business Brokers has extensive experience in representing a variety of franchise brands in the reselling of franchises across the country. We offer a fixed rate commission, on a non-exclusive basis, to franchisors for a successful buyer referral of one of their franchise resale locations.
Scenario
A franchisee advises the franchisor that they are interested in selling their franchise, but they don’t necessarily want to list exclusively with a local broker.
The franchisor wishes to assist the franchisee in finding a buyer, desires an avenue to recruit leads in the local market and perhaps in some instances, wants to protect the confidentiality of the specific brand / location that is being sold until an NDA is executed by a potential buyer.
Proposed Process for VR Business Brokers
- The franchisor and franchisee work together to determine the desired selling price. We can also help with a business valuation as needed.
- The franchisor gets agreement from franchisee that if a broker refers a prospective buyer that ultimately purchases their franchise, there is a direct referral fee paid to broker (VR Business Brokers charge $20K per successful referral).
- The franchisor provides VR Business Brokers with all the pertinent details of the franchise resale opportunity (we have a worksheet to use as a guide). VR prepares an ad that is placed on several “business for sale” related websites listed below, along with a confidential business information package that provides much more detail about the opportunity. (a sample of our information package is available for your review upon request).
- VR Business Brokers screens all leads, secures an executed NDA along with basic financial capability of prospect, and only then provides the information package to the prospective buyer. If the prospect continues to have interest, we inform the franchisor to begin their prospect initiation process directly with the buyer. We provide the franchisor with the executed NDA, financial profile, and a short summary of the prospect’s background and experience.
- The franchisor takes over the primary communication with the buyer, and we continue to assist in additional dialogue with the buyer as needed until such time as an agreement is reached with seller.
- Franchisor sees the transaction through to closing and ensures payment of commission to VR upon closing.
- In the event the referred buyer decides to purchase a new franchise, then franchisor compensates VR accordingly.
Benefits to Franchisee and Franchisor
- The franchisee doesn’t have to get locked into an exclusive agreement with a local broker who may or may not be familiar with the franchise brand and franchisor requirements.
- We take the appropriate steps to protect confidentiality of the franchisee.
- In most cases the franchisee is saving money compared to using a local broker – most brokers charge a 10% commission on the final selling price of the business. Any sale price above $200K represents a savings in commission to the selling franchisee.
- Many local brokers are not interested in businesses that are struggling or “under duress” in some way. Yet, the franchisor wishes to see a transition of ownership in order to avoid a possible closure. We are happy to work those deals as well!
- The franchisor doesn’t have to deal with all the initial inquiries (tire kickers) in order to find that RIGHT individual– we take care of that for you!
- VR Business Brokers will provide a report to the franchisor on a monthly basis indicating the number of leads we have secured for each listing so the franchisor can easily communicate with franchisees as to the status of their transaction.
Businesses for Sale Websites
Below is a list of websites that we use to promote our franchise resale opportunities.
VR Corporate Sites
National Businesses For Sale Sites
www.bizbuysell.com – partners with over 150 websites across the US including on line business journals and newspapers.
National Newspapers
Wall Street Journal – http://online.wsj.com/home-page
Our buyer database consists of over 4,000 active buyers that continue to have interest in finding the right business opportunity. We provide a monthly newsletter to this database promoting all our active business opportunities.