Franchisees typically outperform corporate stores.  Going franchise will help 7-Eleven sharpen their focus and improve financial results.  This makes sense to me, as the franchisees have a vested interest and will execute plans better.  7-eleven, operating more than 33,700 stores worldwide, has done a great job of simplifying their processes; they have the systems and processes in place; and they have done a great job with technological advances.

I see many franchisors following this lead and selling corporate stores.  As a business broker, I enjoy working with franchisors like this as they typically have excellent books and records (which I find key in any business sale).  To learn more about the opportunities available and receive a list of these and other corporate-owned opportunities, call 407-421-0772 or email franzjon@cfl.rr.com

as featured in the Orlando Business Journal: 

http://www.bizjournals.com/orlando/stories/2008/12/01/daily13.html?f=et70&ana=e_du

FOR IMMEDIATE RELEASE     (11/18/2008)

(Winter Park, FL) Brown Harris Stevens is pleased to announce the sale of the Johnny Rockets Corporate-Owned Restaurants at Winter Park Village and The Loop. A new franchisee of Orlando FL acquired the restaurants from The Johnny Rockets Group, Inc. The transaction was handled by Jon Franz of Brown Harris Stevens.

The Johnny Rockets Group, Inc. (johnnyrockets.com) is a privately-held company based in Lake, Forest, California that operates restaurants under the name Johnny Rockets® in the United States and abroad. Johnny Rockets is an international restaurant chain that provides the food, fun and friendliness reminiscent of feel-good Americana. They currently have 258 restaurants in 7 countries with expansion plans to surpass 1,000 restaurants.

Brown Harris Stevens is a full service commercial real estate firm located off Park Avenue in Winter Park FL. Jon Franz, head of their business brokerage division, is a member of the International Business Brokers Association and specializes in the sale of franchised businesses. For more information, go to www.franzjon.com

The International Business Brokers Association (IBBA) is the largest international non-profit association operating exclusively for the benefit of people and firms engaged in the various aspects of a business brokerage and mergers and acquisitions. Today, the IBBA has more than 1,950 cooperative business brokers and intermediaries across Canada, Mexico, Asia, Europe, Australia, New Zealand and the United States. For more information, go to www.ibba.org.

However, that’s not the case when selling a business. Place an ad that your business is on the market and people start to wonder. It creates an air of uncertainty that can be detrimental to your bottom line and put the company in jeopardy.

To increase the likelihood of a successful sale of a business at an optimum price, keep it confidential!

What’s likely to happen if people find out the business is up for sale?

Employees get nervous - They begin to worry if their jobs will disappear or if they’ll get along with a new owner. Some may even quit before you have a chance to reassure them and it will probably be the good employees that leave. They’ll start looking for jobs that make them feel more secure.

Losing key people is serious, particularly during the sale process. Key staff members provide valuable continuity and business knowledge that buyers are looking for. Lose them and potential buyers may be lost too.

Customers begin to wonder - They may become concerned whether the business has problems that could threaten their supply chain. They may start questioning if they’ll get the same quality from the new owner.

Competitors will spread the word - Once the competition finds out, rest assured they’ll let your customers know and use it as ammunition to bring that business to their company. It opens the door for them to steal business from you.

Vendors and creditors may tighten terms - You may be working with terms of net 45 or more to benefit your own cash flow. But once creditors learn that the business is for sale, you may find those terms tightening or notes unexpectedly called due.

On average, a business sale takes nine months to one year. If even some of these changes occur early on, the impact can be dramatic. You’ll find that you’re not only running a business, but you’re busy putting out fires.

A buyer wants a successful operation with few changes until he or she can make those changes. Too many question marks translates to greater risk and lower purchase offers.

Confidentiality is crucial no matter the size of the company or the type of business. To maintain confidentiality, use a professional who understands the process – use an intermediary. An intermediary will market the business in a confidential manner, while providing just enough information to attract the buyers you are looking for.

The intermediary should be diligent in screening inquiries to be sure competitors aren’t out there fishing for details. The intermediary should only be sharing your identity after determining that a potential buyer is seriously interested and is qualified. Those serious and qualified buyers should also be required to sign a binding confidentiality agreement that holds them accountable for leaking information.

You want to maintain your business as usual for as long as possible. Keeping the sale confidential until the time is right will help you to minimize uncertainty and maximize the sale.

The International Business Brokers Association® is the largest international, non-profit association operating exclusively for the benefit of people and firms engaged in the various aspects of a business brokerage and mergers and acquisitions. IBBA® has 1,950 members worldwide, with corporate headquarters in Chicago, Illinois.

Top (3) Reasons the Buyer Fears to Provide Financial Statement:

1. Misinformed about the business-buying process.
2. Not serious about buying a business.
3. Not in a position to acquire the size business investigating.

Top (3) Reasons the Buyer Should Complete a Financial Statement:

1. Increase Negotiating Position:
1. Seller(s) will recognize Buyer(s) ability to get the deal done.
2. Seller may be willing to hold a note:
1. Shows good faith, honesty and establishes credibility.
2. Seller(s) provide more confidential information and records than a Buyer will disclose. Seller(s) do not need to sign a non disclosure because they have no interest or reason to disclose your financials and if they did why would it matter?
2. Buyer(s) able to focus time on the RIGHT Businesses (Business Broker is able to help focus).
3. Allows Buyer(s) to get a handle on personal financial issues:
1. Start thinking of how much willing to invest.
2. Get your spouse or partner on board so that when the time comes for you to write a check together, there won’t be any surprises.
3. Put yourself in a much better position against other interested buyers on those businesses that you can afford to acquire.

National restaurant franchisor is selling over a dozen corporate-owned restaurants through-out Florida and the U.S.; corporate strategy is to focus on franchise expansion. Build your restaurant portfolio by purchasing one or several of these corporate-owned stores along with an area development agreement. I have exclusive rights to list and sell corporate-owned stores. Below are a few of the details. If you or anyone you know would like more details, please let me know. Because of the confidentiality of the sale, I will need to request a NDA and Personal Financial Statement. Company executives will be visiting Central Florida this week and I would love to introduce you. I believe these are priced to sell quickly and will not last long (2 locations are already under contract).

Buyers (even if they have the funds available) like the idea of seller financing because:

1. Increase Cash Flow: Sellers often offer 1/3 to 2/3 of the sale price as seller financing (or even higher). This allows the buyer to use their cash for other investments.
2. Seller Faith: Calms the buyers because they understand that the seller is confident in the future of the business.
3. Seller good attitude: After the sale, the seller may be more attentive and genuinely helpful.

Sellers like the idea of seller financing because:

1. Higher Price: They typically receive 20% higher sale price when financing is offered.
2. High Return on Investment: The interest rate they charge may be up to 10% or higher!
3. Risks and Returns: If, for some reason, the buyer does not work out, then they may pocket the cash already received, take over the business, build it back up and then sell it again.
4. Faster Sale: They do not have to wait weeks or months for other loans to be set up.
5. Speeds up the process: Opens more doors to more buyers: other lender financing may not be available.
6. Tax advantages possible (consult your tax advisor).
7. Added Security Provisions:
   1. Personal guarantee from buyer