Franchise Resale Brokerage

Broker the sale of existing franchise locations

Startup Cost
$10,000-$40,000
Difficulty
Advanced
Time to Profit
8-18 months
Profit Potential
$12,000-$125,000/month

Overview

Franchise resale brokers earn 8-12% commission on franchise sales, typically $30,000-$150,000 per transaction.

Closing 5-20 deals annually generates $150,000-$1,500,000 with 85-95% margins.

In 2025, franchisees exit and sell existing locations.

Revenue from seller commissions (8-12% of sale price), buyer representation fees (2-3%), franchise valuation services ($2,500-$8,000), and consulting fees.

Services include franchise business valuation, franchise listing and marketing, buyer qualification and franchising, franchisor transfer approval coordination, SBA lending and financing assistance, and transaction closing support.

Successful brokers understand franchise valuations, have franchise industry relationships, pre-qualify buyers with franchisors, help buyers secure SBA loans, and close transactions smoothly.

Franchisees selling and buyers purchasing as clients.

Marketing through franchise resale portals, business brokers, franchise attorneys, franchisee associations, and franchise brands.

Required Skills

  • Business Brokerage
  • Franchise Valuations
  • Franchise Transfer Process
  • SBA Lending
  • Negotiation
  • Franchisor Relations

Pros and Cons

Pros

  • High commissions per franchise sale
  • Existing franchises easier to value and sell
  • Franchisees regularly exit businesses
  • Buyers prefer established locations
  • Can earn from both buyer and seller

Cons

  • Need business brokerage license in some states
  • Franchisor transfer approval required
  • Long sales cycles (6-12 months)
  • Franchise valuations complex
  • Competition from business brokers

How to Get Started

  1. Get business brokerage licensing if required
  2. Build franchise industry expertise
  3. Develop relationships with franchisors
  4. Market franchise resale services
  5. Value and list franchise businesses
  6. Qualify buyers and coordinate with franchisor
  7. Close franchise resale transactions

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