Cost of selling your franchise business

Before commencing the process of selling, ensure you take into account the cost and exit fees so they can be factored into your negotiations with a prospective buyer.

The costs of selling can be considerable and include:

  • business agents fees and advertising;
  • landlords costs to approve the incoming franchisee and any make good costs;
  • the franchisors transfer costs which may be a fixed fee (i.e. $5,000.00) or a percentage of the sale price;
  • legal costs and don’t forget any CGT and GST issues may need to be considered.

By asking these questions at the earliest opportunity you may save yourself time, costs and disappointment.

Robert Toth | Franchise Partner | Corporate & Commercial | Wisewould Mahony
p +61 3 9612 7297| f +61 3 9629 4035
robert.toth@wisemah.com.au | www.wisewouldmahony.com.au

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Tim Kilham - Lanyon Partners

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Alan Branch - Optivance 360

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Vicki Prout - Sherpa Group

Vicki ProutVicki has been involved in the franchising sector as a Franchisor, Franchisee, and Consultant. She is currently an international consultant guiding businesses through their franchising journey.

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Robert Toth - Wisewould Mahony

Robert TothRobert has over 25 years of experience as a business lawyer and consultant. He writes regularly in franchise and industry journals and is a recognised leader in franchise law in Australia.

To ask Robert Toth a question click here.

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