Know When To Say No
Every franchise business sale is not destined to happen. There are times when business owners must step away from the deal for one reason or another. David Ostrowe, the former corporate executive for Church’s and Taco Bell, knows first-hand about selling businesses. He is currently a franchisee overseeing multiple locations for Burger King, Taco Bell, and Blaze Pizza, under his 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 successfully 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.
- Know When To Hold Them And Know When To Fold Them. If the deal isn’t perfect, walk away. “Years ago, I was tripping over “red flags.” I was so focused on the transaction and the dream of doing something else that I ignored little comments, weird behavior, employee concerns, and numerous other issues. I moved forward and within 90 days, the buyer had stripped out all the cash and assets. It took two years and several hundreds of thousands to resolve,” he says.
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