Most of the people who subscribe to this franchise blog are here to gather information about buying a franchise; not selling a franchise. Big difference.
If you're a would-be franchise owner, you're focused on finding that "perfect" franchise. You're trying to get your arms around the up-front investment, and your return on that investment. That's what you should be doing. But, there's something else that most future franchise owners forget to consider.
Is the franchise that you're thinking of investing in have a potential to create some real equity? Let's hope so. Because that would be a good thing.
For example, if you're looking into investing in a retail franchise, you may have an opportunity to become a multi-unit owner, and it's easy to see your equity. All you have to do is drive from one location of yours to the other locations that you own. They're your businesses! WOW!
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But, if you're considering a business to business franchise, like a consulting type of franchise…maybe something home-based, like a business-coaching franchise, it's a little harder to put your finger on just how much equity you'll be able to enjoy.
Part of your franchise due diligence needs to include your exit strategy. Most franchise agreements are 10 years. What are you going to do when your contract expires? Will you renew it? Will you sell it?
Here's an Inc.com post from fellow Small Business Trends writer John Warrillow, that will give you some great tidbits of food. For thought. About selling your franchise, when the time comes.