Unless you already have a buyer, such as a fellow franchisee, a key manager, or a family member, use a business broker when selling your franchise. Even if you have a buyer, use a business broker.
Why?
It is helpful to hire business broker to expand the universe of those interested in your business and to confirm that you are getting a fair deal.
The law of supply and demand applies to businesses as well. If you have more buyers (higher demand) you should be able to command a higher asking price.
Brokers have specialized knowledge and experience dealing with multiple transactions a year, where you may only sell a business once in your life or only a handful of times.
In addition, don't underestimate the value that a broker provides by acting as a third party intermediary. They will screen unqualified buyers and help the serious buyers understand your business better.
Broker's have processes to deal with many buyers and will be able to efficiently and effectively reach a much larger audience than you could alone.
Your ideal buyer may contact your broker about another business they have listed only to learn it is not a match or already sold. Access to that database of buyers is usually well worth the commission.
Talk to multiple brokers, and when you interview them be sure to obtain and check references.
Hiring a broker is an important step. The wrong broker can cost you valuable time
Tom makes excellent points in this piece. I am not a broker, but I have been in the past, and I was able to add a LOT of objectivity to a candidate's search for their "new beginning". From the franchisor's standpoint, a solid franchise broker can save you lots of money, time, and anxiety, while bringing you a more qualified candidate. Most importantly, a good broker serves a a great "trust builder" between the franchisor and the candidate, WHEN he/she provides their services with honesty about the "degree of match" between the candidate, their resources, their interests, and the offerings of the business itself.