Small Business Deal Advisors are franchise re-sale business brokers. Unlike most main street brokers, we focus on building relationships with franchisors and confidentially valuing and representing franchise re-sale business opportunities. What is different about our process?
Low Fees - we have a low 8% success fee instead of the 10 - 12% charged by most brokers.
No Long-Term Contract - our program is month to month, the seller has full control and is not locked into a long-term contract.
Market Valuation - we provide market valuations and sale guidance that franchisors are legally unable to provide to their franchisees. Click here to find out what your business is worth.
Expert Advice - we understand the franchise re-sale brokerage market. We give accurate valuation and sale guidance that franchisors are legally unable to provide to their franchisees. By working directly with franchisors and adhering to franchisor criteria, we ensure that only qualified buyers are presented as potential buyers.
Technologically Efficient - through the use of an automated CRM system, we maximize the efficiency and timely flow of information to buyers. Additionally, we are heavily invested in SEO/online marketing to ensure a constant flow of new buyers. In sum, via technology, we are able to increase our reach to a national audience of buyers while reducing our advertising and project management costs. We pass the savings to our clients.
Centrally-located - most "national" business brokerages are actually just very loose, decentralized offices operated by individual brokers. The communication between the home base and the individual offices is often poor and inconsistent. The marketing methods and skillsets of the individual offices vary widely. In sum, "national" firms tout nationwide marketing when in essence they are just trying to generate referrals for their individual offices. The idea that they offer a national and coordinated marketing effort for any business is a myth.
SBDA operates from a central office where all marketing, NDA processing, and buyer qualification are handled. This allows us to be streamlined and efficient. In the age of the Internet, national marketing is best handled by a single office with a large buyer database and savvy web marketing staff.
Representative Franchise Re-Sales
Historically, most franchisors have not effectively assisted in the sale of existing franchises. There are many reasons for this:
Franchisors are focused on assisting with new sales. Startup or new franchises are pre-packaged and more easily-understood by prospective new franchisees. Conversely, franchisors often not trained in understanding how to market going-concern businesses and struggle to effectively market where resale buyers are searching.
Item 19 - Due to Item 19 in the Uniform Franchise Offering Circular (UFOC), Franchisors are legally restrained from giving advice regarding business valuation or advise on the sale of going-concern franchises.
Even though franchisors have the freedom to develop the information they include in Item 19, it is unlawful for any franchise seller to make a financial performance representation that is not true or not substantiated when it is made. Because of this, most franchisors give no guidance on business valuation or the re-sale process.
Furthermore, franchisors do not often have experience assisting owners with the sale of their long-held business.
For these reasons, few resources have been devoted by franchisors aimed to assist in the sale of existing franchisees. This is not to denigrate franchisors, just demonstrate that they are primarily geared toward selling new franchises and operationally supporting their network. And due to harsh potential penalties, they refrain from giving guidance or making statements regarding business valuation or the sale process.
Typically, franchise owners are steered towards local main street business brokers. Unfortunately, these brokers mostly use a broken model - high commissions, long-term, exclusive contracts, and poor communication, especially when things are not going well.
