Are there ways to increase profits from franchise sales?

It is confirmed that you are considering a franchise sale.

The part you inquired about seems to be how to increase profits when selling a franchise.

There are 3 representative methods.

First, there is the method of maintaining high operating profit and operating profit margin.

One of the important factors in increasing the sale value is operating profit and operating profit margin.

The higher the operating profit, the higher the multiple you can receive at the time of sale, so it is important to generate stable and continuous profits.

Also, overseas expansion can be a way to increase sale profits.

This is because there are many cases of franchises that have successfully expanded into overseas markets receiving higher valuations at the time of sale.

Expanding business through overseas expansion can increase corporate value, and overseas equity investments and dividend income can also act as favorable factors at the time of sale.

Lastly, holding the trademark in personal name can reduce the tax burden at the time of sale.

This is because if the franchise headquarters holds the trademark in personal name and transfers part of the sale price as the trademark, the transfer tax rate can be reduced.

Through this, it appears the sale profits can be maximized.

However, the strategy may differ depending on the situation of the franchise brand you are currently operating.

Therefore, please establish a profit maximization method for franchise sales tailored to your situation through consultation with an M&A attorney.