Below are a list of some of top or main reasons why some existing franchise businesses or locations wont or don’t sell when listed for sale.
Length Of Time In Business: Like most small independent businesses franchises that are established less than 2 or 3 years are difficult to sell because they don’t have a very long history or track record to help demonstrate their viability.
Not Profitable: Its not uncommon for new franchises businesses to take at least 2 years before they can achieve profitability. Many small business buyers need income immediately to cover their own personal living expenses and are not willing to look at businesses that are not profitable.
Over Priced: This is probably the #1 reason why a lot of existing franchise businesses wont or don’t sell. Many franchise business owners are just not very realistic about what their business is worth in the market place.