How to Sell a Blimpie Franchise

Sell a Blimpie Franchise

Are you a Blimpie franchise owner interested in selling your Blimpie sub shop? In this review, we discuss the process for determining the value of a Blimpie franchise restaurant and provide a step-by-step guide to selling your sub shop. 

About The Blimpie Sub Shop Franchise

The Blimpie sub sandwich franchise is one of the most established restaurant franchises in the United States. There are more than 160 locations across the U.S. They have an established business model and brand recognition that extends across the country. Consequently, many investors are intrigued by the idea of purchasing an established Blimpie restaurant location. 

How to Value Your Blimpie Franchise

You can determine the value of your Blimpie franchise by using your seller’s discretionary earnings (SDE) and rule of thumb data (also known as industry multiples). The industry multiples for Blimpie franchise restaurants are: 

  • Blimpie restaurants sold between 1.67 and 4.98 times the Seller’s Discretionary Earnings (SDE)
  • Blimpie restaurants sold between 2.07 and 3.16 times the Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)
  • Blimpie restaurants sold between 0.30 and 0.39 times the annual net sales

 

Although the value you arrive at provides a general idea of your fair market value, you should also consider non-financial factors such as your location, unique competitive advantage, the reason for selling, local reputation, and growth potential. We recommend using the market approach and receiving a professional valuation from an experienced business broker. 

You should also check: How to Sell a SERVPRO Franchise Business

How to Sell a Blimpie Franchise for Fair Market Value (FMV)

Blimpie franchise restaurants have a unique sales process. Notably, they must gain an understanding of their franchise agreement and find a buyer who Blimpie is willing to accept as a buyer. The general process includes these steps:

  1. Planning and preparation
  2. Marketing and negotiations
  3. Due diligence process 
  4. Close the sale and transfer ownership

Planning and Preparation

This first stage is your opportunity to plan your exit strategy. This involves establishing your goals, preparing your sales memorandum, and creating your timeline for the sale (which includes when you bring your company to market). The planning and preparation stage also involves collecting the financial and legal documents you need for the later stages of the sale. Your broker may provide you with a specific list of documents. However, in general, the list includes:

  • Tax returns 
  • Profit and loss (P&L) statements
  • Balance sheets
  • Franchise agreement
  • List of employees
  • Real estate appraisal or lease
  • Insurance policy

Marketing and Negotiations

The next step is to find qualified prospective buyers. This process involves leveraging private channels to maintain the confidentiality of the sale for your Blimpie franchise. Keep in mind, you must also find a buyer who Blimpie is willing to approve as well, which may impact the search. Your broker will screen the offers as they arrive and explain the details for each with you to help you make informed decisions about which is best to accept.

Of course, negotiations are also a part of the sales process. Your goals may go beyond financial motivations (i.e. maximize your sale price). Additionally, the negotiations may also include factors such as keeping your employees, continuing community initiatives, and more. Once you narrow down your list and select a buyer, they sign a letter of intent (LOI) to establish the terms of the purchase agreement. 

Due Diligence Process

During due diligence, the buyer reviews your financial information (such as those in the list above), legal documents, and the franchise agreement. They may have a series of questions that they give to you to learn more about the restaurant and to clarify financial and legal information. Your broker may work to ensure the process is structured and remains organized and on track to avoid long delays. 

Close The Sale and Transfer Ownership

The last stage is closing the sale and transferring ownership to the buyer. At the closing table, your attorney reviews the final purchase agreement, and you and all other involved parties (including the seller) sign the purchase agreement. The payment is then sent to you, and you will transfer all legal ownership o the Blimpie franchise restaurant to the buyer. You will also need to notify Blimpie of the official change in ownership. This is in addition to keeping them informed throughout the sales process, including receiving their approval to sell to the buyer you choose before closing begins. After this closing stage, you can proceed with your next journey in life, whether it is pursuing other business ventures or retirement. 

Sigma Mergers and Acquisition Helps Blimpie Owners Through The Sales Process

We understand how stressful the sales process can be for Blimpie franchise sandwich shop owners. It is our goal to make the process as easy and successful as possible by providing brokerage and consultancy services. Here at Sigma Mergers and Acquisitions, we also offer free, no-obligation valuations to help you determine the worth of your Blimpie restaurant. Schedule a consultation today to learn more and get started.

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Scot Cockroft Business Broker
Hi, I’m Scot Cockroft.

When I founded Sigma Mergers and Acquisitions back in 2003, I had sold my business the year prior.

Now, that can sound good, but let me tell you, back in 2003, it was not easy to sell a business. Not that I’m saying in modern day times it’s easy to sell a business, but back then I interviewed broker after broker after broker, and no one was interested in actually seeing the value that my business brought to the table.

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Sigma is a the leading business broker in with Corporate offices in Dallas/Fort Worth with roots from 1984. Over 600 businesses sold in Dallas, Fort Worth, Texas, Oklahoma and across the South. Sigma provides full business brokerage services with NO upfront fees. We provide Market approach business valuations for business sales. Sigma is passionate about helping business owners achieve their goal of financial security. Contact us today for a free no obligation business valuation. We are here to help you achieve your goals.

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