BC Franchising Consultants
will represent our client, the restaurant/business owners
wanting to sell their restaurant/business, in all facets
of the sale process. Both our client’s and
the businesses confidentiality is protected throughout
the entire valuation appraisal, business analysis,
marketing and selling of the business. We have
the necessary skills and experience to market
your restaurant or business and negotiate price and conditions.
We determine a market value of the business and
establish a value to the business that will optimise
a satisfactory return-on-invest (ROI) to the Buyer.
BC Franchising Consultants will furnish the Seller
with a written valuation on the restaurant or business, provided
all requested information is supplied.
We prepare a detailed presentation on the restaurant or business
to assist with marketing to the potential Buyer.
The Presentation represents financial information,
and information on leases, management and staff,
menus, marketing programmes, and franchise details
if applicable This Presentation is used to market
the business without compromising the confidentiality
of the Sellers. This Presentation can usually
be used to assist any financials applications
We have a listing of qualified Buyers that have
approached and signed up through our network,
or through existing clients, our various marketing
media advertising or through our web page. We
advertise only when we cannot match business to
our current Buyers. We ascertain financials status
of the Buyer, areas of interest, particular restaurants/businesses
requirements and applicable business experience.
We will always endeavour to match the right Buyer
with the right business prior to disclosing of
The Sale Agreement and
“In business you never get what you want,
you get what you negotiate”. We assist through
the negotiations of the sales agreement, terms
and conditions, price and date-of-takeover. We
provide a Sales Agreement for your use in the
sale, and assist in the proper documentation and
application for all legal requirements. We carefully
supervise each step of the sale process, from
signing of the agreement, to lease negotiations,
lodging of deposits and up to the hand-over so
we can ensure that all requirements of the sales
agreement are adhered to.
Ten Points of Advice from BC Franchising Consultants
Ask for a realistic
price. Although the Selling Price Valuation
is determined by a number of variables, emotional
attachment is excluded as an influence. The
Buyer does not yet have the same emotional
attachment to the restaurant or business and so will fail
to reach the same value. If the asking price
is too high, you will deter potential buyers
from making an offer for fear of offending
records of your finances of the business and
have up to date Income Statements, copies
of your lease, copies of VAT returns etc.
Buyers often lose enthusiasm when they have
to wait for documents to be produced.
Keep up with
repairs and maintenance of the premises. Buyers
will request a viewing of the restaurant or business before
or after trade hours without staff present
and will notice equipment and fixtures and
fittings in need of repair. When you sell
your car, you service it, mend it and get
it washed, vacuumed and polished to enhance
the selling price. This is a similar transaction.
Let your attorney
read over our Sale Agreement and advise you
accordingly. Our Sale Agreement is used on
most of our transactions, but we still encourage
input from your legal advisors for your best
interests. Attorney’s fees in reading
a prepared document are far more economical
to you than the drafting of a new document.
Make sure your
premise and equipment leases are transferable
before you consider selling. Many potential
sales have terminated because Landlords refuse
to assign a current lease or draw up a new
one. If your remaining lease term is short,
negotiate a new lease prior to offering that
business for sale.
the sales and Income Statements (or Management
Accounts) declared to buyers are verifiable.
The Buyer will conduct a Due Diligence investigation
to verify all financials presented for accuracy.
Don’t waste your time falsifying these
figures as this will not achieve a better
price, only a few months of wasted time.
Always reduce any verbal
agreements to writing, as you can always remember
what you signed in a document. Even after
you have signed the Sale Agreement with the
Buyer, it’s important to write up and
sign any amendments or additions.
lodged by the Buyer that is held in an attorneys
trust will only be paid to you together with
the full purchase price on the day of take
over, or “Effective Date”. No
payment = No keys. Possession is 9/10th of
the law so never permit the Buyer occupation
until full payment has been made and cleared
in your account.
verify. Ensure all accounts and services transferred
to the Buyer have been complete and debit
orders cancelled off your account.
Never let your
staff or customers know of your intention
to sell. BC Franchising Consultants will endeavour
to maintain the confidentiality of the sale,
and adhere to procedure that allows potential
Buyers to view the restaurant or business as customers
during trading hours and also after hours
without any staff present. We constantly remind
Buyers not to approach any staff, management
or owners in connection with the sale. BC
Franchising Consultants will be the conduit
in all dealings with the Buyer.