Selling Real Estate and Recording Revenue

By: David Ostrowe
Published: January 21st, 2019

David Ostrowe learned a lot working on the corporate side for brands like Church's and Taco Bell. Today, as a franchisee, he operates locations for Burger King, Taco Bell, and Blaze Pizza. His organization operates three franchise companies: Blazing Partners, 180 Business Solutions, and O&M Restaurant Group.

One of the business skills Ostrowe has developed over his career is buying and selling franchise units. It takes knowledge and experience to know how to decide when to sell, what the units are worth, where the franchisor stands, and a multitude of other factors that can affect the maximization of profit when selling.

If you think selling a franchise unit may be in your future, consider this tip from someone who has been there and done that.

• Will your deal include selling your real estate?
  Do you know the cap rates associated with your brand? I track the real-time value of my business by concept. Every period, I'll track the real-time marketable value so I know the perfect time to potentially sell or reinvest.
• You should be reporting 100 percent of all revenue by properly posting on the P&L.
  It should match the royalty and sales tax reports to the penny.

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