Hey Patrick- can you do a video deep diving the exit? How much harder is it to sell than other businesses? Does your asset evaporate when the franchise term ends? Are they generally more or less valuable than selling independent businesses? I think that would be a nice topic to complement your (already amazing) library of videos.
Some industries like property management and insurance value the book of the business not the cost to maintain them as the acquirer might have very different cost structures.
In the process of franchising our business model, I know the process takes time and find the right franchisees.. I was considering building out locations gmb assets and driving phone calls and leads using the Rank rent model. At some point sell the franchise location as a business already up and running so the franchise buyer it's profitable from day one. What are your thoughts do you think this is a good model? Can we sell for more money based on revenue or phone call volume? Please share your thoughts thank you.
Hey Patrick- can you do a video deep diving the exit? How much harder is it to sell than other businesses? Does your asset evaporate when the franchise term ends? Are they generally more or less valuable than selling independent businesses? I think that would be a nice topic to complement your (already amazing) library of videos.
Sure, I'll record this today. Will be up in 2 weeks. We do get asked this question quite often by franchisees.
Here you go! th-cam.com/video/JpNRdvlkSGs/w-d-xo.html
why would businesses sell for a multiple of revenue as opposed to profits?
Some industries like property management and insurance value the book of the business not the cost to maintain them as the acquirer might have very different cost structures.
@Vettedbiz ahhh makes sense. Thanks. And appreciate all of your informative videos!
@@markstone6263 no thank you. It's a great question as the multiple of revenue is not intuitive.
In the process of franchising our business model, I know the process takes time and find the right franchisees.. I was considering building out locations gmb assets and driving phone calls and leads using the Rank rent model. At some point sell the franchise location as a business already up and running so the franchise buyer it's profitable from day one. What are your thoughts do you think this is a good model? Can we sell for more money based on revenue or phone call volume? Please share your thoughts thank you.
Could work for first few locations but difficult to do at scale
Awesome thank you for your feedback 👍 you do awesome work I've learned so much as following your channel 👍
@@michaelm2420 Thanks!!
Can you be my mentor or connect me to a mentor?
What are you looking for out of a mentor Kory?