Franchises are some of the world’s most recognizable businesses. There are thousands of franchises registered throughout the United States of America. Franchising is an awesome tool for growing your business. But the process is more complicated than deciding to franchise your business and finding someone to be a franchisee. Drafting a Franchise Disclosure Document and a Franchise License Agreement, creating operating manuals and training programs, creating marketing plans, registering with specific states and more can take a massive effort and requires a capital investment.
One way that some consultants have claimed to save new franchisors effort and money is by packaging the entire franchise setup process under one roof. They will walk a new franchisor through the entire process an assist in the development of every document that is needed for your business to become a franchise. The problem is this creates a major legal issue for a business that is making one of the biggest changes that it will ever go through.
Selling your business is not something that should be entered into lightly. Putting out feelers or testing the market to see if there is any interest can do more harm than good. When you actually are starting to consider putting together an exit strategy, the first place to look is internally. Sell-Side Diligence is growing in popularity in the United States because of the number of benefits it can bring before, during and after the deal but some business owners do not understand the process.
Sell-Side Diligence is nothing new to world. In Europe it is often referred to as Vendor Due Diligence and is extremely standard in in transactions. From a logical standpoint, the process makes a lot of sense. Look into your own closet, drag out all the skeletons you can find, take care of those that are easy to resolve and then let potential buyers know about the rest so there are no surprises. This process will not only increase the value of your business but it will also smooth out the transaction process.