How to pre-empt the sale of its activity

The franchisee must obtain the approval of the head of network on the choice of the buyer. An additional constraint in this type of transaction that is already complicated.

This is the batch of all brands in mature : each year, approximately 5% of their points of sale are put on the market, either because the franchisees concerned wish to take their pension, either because they want to move on to something else. "The question of the assignment is always difficult to address," observes Laurent Delafontaine, co-founder of the consulting firm, Axis Networks. "The signs, so prompt to communicate about their development, are always the most discreet on the assignment, confirms Christophe Bellet, a consultant in the firm to Earn tax-free. As if they were afraid that this would alert the market or the competition, so that this turn-over is logical and healthy."

Chez Tryba, no taboos. "On our network of 180 points of sale, five to six concessions are for sale every year, shows Emmanuelle Ascensio, responsible for the development. At least half of these sales are related to the retirement of dealers." At Ixina, including the 92 franchisees have, on average, 57 years of age, between two and four points of sale must seek a buyer each year. "Half of the sellers are themselves the buyer," explains Thierry Tallet, director-general of France. For the other half, we have a stock of candidates for the recovery of which the profile has already been validated : these are franchisees who prefer to pay more expensive - about 50 % more than the initial investment of a new point-of-sale - for not having to start from scratch."

prepare two years before

As with any business transfer, the sale of a business as a franchise must be prepared at least two years in advance. This is the time needed to establish the best diagnosis is : should he assign the business or the shares ? Whiling away the investments or, on the contrary, submit their work to the standards ? Wait until the end of the lease or renegotiate it ? These questions should be the subject of a diagnostic patrimonial, social and financial, achieved with an accountant and/or an expert in business transfer. Not to mention that tax, the franchise seller will be subject to different fees and taxes that only a specialist is able to decrypt it.

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Prevent the franchisor

"In general, the franchisees, we have been warned very early on," explains Marie-Emmanuelle Ascensio. Therefore we can accompany them in the search of a buyer, and in the evaluation process." But all of the franchisees do not take the trouble to prevent their head from their project assignment. "Some brands have therefore taken the habit of the probe," said Laurent Delafontaine. Two years before the end of the franchise agreement, the facilitator of the network can thus ask the franchisee if it plans to continue its activities or dispose of." Failing to ask clearly the question, the signs can decrypt some weak signals : their age pyramid, the weariness expressed by some franchisees, the accidents of life (death, accident, or separation).

Choosing the right buyer

It is the peculiarity of the franchise. The seller may find their own buyer but he must obtain the consent of the franchisor on the selection of the candidate. And often, the head of network has its word to say. "All the candidates presented by the franchisee must go through our process of accreditation," explains Thierry Tallet. At Ixina, for example, we don't like too many investors who do not wish to operate their point-of-sale." So, to be assured of making good castings, many times, are internal.

"Pass on to an employee, it is clearly in the spirit of the franchise, observes Franck Berthouloux, a consultant in the firm TGS France. But these are projects difficult to finance." Disposals to other franchisees of the network are often preferred : it is included in the development strategy of many brands. Internal or external, in any event, when several candidates are on the ranks, it is the brand that slice.

"A price equivalent, it is easy," continues Thierry Tallet. But if I decide to depart the buyer offering the highest price, I better have good arguments !" To convince the alienator, but also the courts : "Refuse the buyer presented by the franchisee it is possible a time or two," says Laurent Delafontaine. But a third refusal has all the chances to be punished."

Stay lucid on the sale prices

"The sellers tend to put too much affect in the process of upgrading their point-of-sale", observes Franck Berthouloux . Result : "They see the bride more beautiful than she really is !", smiles Laurent Delafontaine. And for good reason : "traders and craftsmen have long been considered to be the sale of their business will fund their retirement," says Sylvain Bartolomeu Franchise Management. The problem is that the values of the disposals have fallen considerably in recent years."

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To guide the franchisees in the evaluation process of their business or their company, Ixina has established a statistical database of the disposals the more rérecent. "This allows us to bring them back to the reality of the market", explains Thierry Tallet. Tryba offers to its franchisees to assist them in their negotiations with the potential buyers. "But no question of us as a substitute for advice of legal and financial", warns Marie-Emmanuelle Ascensio. "The franchisor can give references or share good practices," explains Christophe Bellet. But it must not give formal advice or take advantage of it." At the beginning and at the end of the contract, it is legally bound to respect the independence of the franchisee.