What Comes Next After The Sale

David Ostrowe has experience selling franchise businesses. The former corporate executive for Church's and Taco Bell is now a franchisee overseeing multiple 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.

• It's crucially important to develop a plan for your next steps after the sale. What will you do for a living? How will you invest the proceeds? I recently spoke with an owner who was selling out. His plan was to take a position with the buyer at a package considerably below what he was earning. He had no idea how much money he was currently earning. When he added his salary, car, bonuses, and "perks," it was more than three times what he thought he was earning. I've personally sold entities and moved the proceeds to outside investments that completely failed. Remember, you're an expert in what you used to do, not in what you're going to do.