Client: Eric Pierce-French
Business: Two Smoothie King Franchise Locations
Location: Dayton and Beavercreek, Ohio
Transaction Value: $1.4M in annual sales, $300K projected owner earnings
WSR Representative: Zoltan Lukacs

The Situation

Eric Pierce-French and his wife Lynne built a thriving business together, opening their first Smoothie King franchise in Dayton, Ohio in 2011, followed by a second location in nearby Beavercreek two years later. With their son Rob serving as General Manager, the couple created two successful stores that provided their community with healthy alternatives to fast food while generating over $1.6 million in combined annual sales.

After Lynne's passing near the end of 2023 following an extended illness, Eric faced a difficult decision. While both stores continued to perform exceptionally well with $285,000 in owner earnings and projections of $300,000 for the following year, it was time for him to move forward with the next chapter of his life. The challenge was clear: how to successfully sell a thriving multi-unit franchise operation while preserving the value he and Lynne had built together.

The Challenge

Eric initially considered handling the sale independently to save money, but quickly realized the complexity of the undertaking. The sale involved numerous intricate elements: finding legitimate buyers in a market filled with scammers and low-ball offers, coordinating with Smoothie King's corporate offices, managing extensive legal documentation, and navigating franchise transfer requirements. Adding to the complexity, the eventual buyer was not a U.S. citizen, creating additional legal and procedural hurdles.

The stakes were high. These weren't struggling businesses looking for a quick exit—they were profitable, well-established operations with 16 employees, loyal customer bases built over more than a decade, and solid operational systems. Eric needed a partner who could handle the complexity while protecting the value of what he'd built.

The Solution

After conducting thorough research, Eric engaged We Sell Restaurants to manage the sale process. WSR assigned Zoltan Lukacs as the dedicated representative to guide Eric through every stage of the transaction. The comprehensive service included marketing the businesses to qualified buyers, filtering out unserious inquiries and scam attempts, establishing appropriate pricing based on the stores' strong financial performance, and managing all aspects of the negotiation and closing process.

WSR took a hands-on approach that went beyond traditional brokerage services. They coordinated regular weekly meetings between Eric, the buyer, and representatives from Smoothie King corporate offices to maintain momentum and address issues as they arose. They also assisted the buyer with legal documentation and franchise transfer requirements, ensuring all parties stayed aligned throughout the process.

The Process and Results

The sale process extended to more than eight months—longer than the typical six to seven month timeline due to the international buyer situation and other unique complexities. During this period, the deal faced multiple potential breaking points that could have derailed the entire transaction. However, Zoltan remained committed to both parties, working through frustrations and obstacles to keep the sale moving forward.

Despite the extended timeline and challenges, the sale closed successfully. The buyer acquired two turnkey operations with established customer bases, trained staff, and proven profitability. Each location—1,390 square feet in Dayton and 1,240 square feet in Beavercreek—transferred with all operational systems intact and SBA lending support in place.

Client Testimonial

"Bottomline, without the support from WSR, the sale would have never happened. The money spent was well worth every penny, and I would never hesitate to recommend their services to anyone else who is looking to sell their restaurant or related business," Eric stated. "Even when it looked like the sale might have fallen through a couple of times, and when frustration levels were running high, [Zoltan] stuck with me and the buyer to bring the sale to a successful close."

Eric's initial instinct to handle the sale independently would have, in his own words, "been disastrous." The investment in professional representation proved essential to achieving a successful outcome.

Key Takeaways

This case demonstrates the critical value of professional representation in complex multi-unit franchise sales. Success required expertise in franchise operations, buyer qualification, corporate coordination, international transaction requirements, and sustained deal management over an extended timeline. For business owners facing similar transitions—especially those dealing with personal circumstances alongside business decisions—the right partner can make the difference between a failed sale and a successful exit that honors years of hard work and achievement.

Frequently Asked Questions

How long does it typically take to sell a franchise restaurant?

The typical timeline for selling a franchise restaurant ranges from 6 to 7 months from listing to closing. However, as demonstrated in Eric's case, complex sales involving multi-unit operations, international buyers, or unique circumstances can extend beyond 8 months. Factors that influence the timeline include franchise corporate approval processes, buyer qualification and financing, due diligence requirements, and legal documentation complexity. Working with an experienced restaurant broker can help streamline the process and navigate potential delays.

Should I hire a business broker to sell my restaurant, or can I do it myself?

While selling your restaurant independently might seem like a cost-saving option, most owners find that professional representation is essential for maximizing value and ensuring a successful transaction. As Eric discovered, attempting a DIY sale of a profitable, multi-unit operation "would have been disastrous." Restaurant brokers provide critical services including marketing to qualified buyers, filtering out scammers and low-ball offers, establishing appropriate pricing based on market conditions and financial performance, negotiating favorable terms, coordinating with franchise corporate offices, managing legal documentation and compliance requirements, and maintaining deal momentum through challenges. The expertise and network that professional brokers bring typically results in higher sale prices and smoother transactions that more than justify their fees.

What are the biggest challenges when selling a franchise business?

Selling a franchise business presents unique challenges beyond those of selling an independent restaurant. Key obstacles include franchise corporate approval processes and transfer requirements, transfer fees (in this case, $25,000 per Smoothie King location), ensuring the buyer meets franchisor qualifications and financial requirements, coordinating three-way communications between seller, buyer, and corporate offices, maintaining confidentiality while marketing the business, and navigating complex legal documentation specific to franchise transfers. When buyers are international or require SBA lending, additional layers of complexity emerge. An experienced franchise broker understands these challenges and has established relationships with franchisors to facilitate smoother transactions.

How do I determine the right asking price for my franchise restaurant?

Pricing a franchise restaurant requires analysis of multiple factors including historical financial performance (sales and owner earnings), current market conditions and comparable sales, franchise brand strength and growth trajectory, location quality and lease terms, operational systems and staff in place, and growth potential and market opportunities. In Eric's case, his stores showed strong financials with $1.4 million in combined sales and $300,000 in projected owner earnings, which supported a premium valuation. Professional restaurant brokers have access to market data and industry benchmarks that help establish pricing that attracts serious buyers while maximizing your return. Setting the right price from the start is crucial—overpricing can result in a stale listing, while underpricing leaves money on the table.

What is SBA lending and how does it work for franchise purchases?

SBA (Small Business Administration) lending is a popular financing option for franchise purchases because it offers favorable terms compared to conventional loans. SBA loans typically require a down payment of 10-20% of the purchase price (in this case, 20% was required), offer longer repayment terms than conventional loans (up to 10 years for equipment, 25 years for real estate), and feature competitive interest rates. For franchise purchases, the SBA maintains a Franchise Directory of pre-approved brands, which can expedite the approval process. Smoothie King is an established franchise with SBA approval, making it easier for qualified buyers to secure financing. Buyers need strong credit history, business experience or management background, sufficient capital for the down payment and working capital, and a solid business plan. Restaurant brokers often have relationships with SBA-preferred lenders and can help connect qualified buyers with appropriate financing resources.

What happens if a deal falls through during the sales process?

Deal complications and potential breaking points are common in complex business sales, as Eric experienced multiple times during his 8-month transaction. Common reasons deals falter include financing falling through, buyer cold feet or changed circumstances, issues discovered during due diligence, franchisor disapproval of the buyer, and disputes over terms or conditions. Having an experienced broker like Zoltan Lukacs who remains committed through challenges can make the difference between a collapsed deal and a successful closing. Professional brokers anticipate potential obstacles, maintain open communication between all parties, provide realistic expectations and guidance, have backup buyers in the pipeline, and work creatively to find solutions that keep deals moving forward. Even when frustration levels run high, skilled brokers maintain professionalism and focus on achieving the ultimate goal of a successful transaction.

What specific services does We Sell Restaurants provide to sellers?

We Sell Restaurants offers comprehensive services designed to maximize value and ensure successful transactions for restaurant and franchise owners. Services include professional business valuation and pricing strategy, targeted marketing to qualified buyer databases, confidential listing promotion to protect your business, buyer screening and qualification to eliminate time-wasters and scammers, negotiation support to secure optimal terms, coordination with franchise corporate offices for transfer approvals, assistance with legal documentation and compliance, regular progress meetings to maintain deal momentum, support for both seller and buyer throughout the process, and access to SBA lending resources and financial contacts. The firm assigns dedicated representatives who guide clients from initial consultation through final closing, providing expertise in restaurant operations, franchise systems, business law, and deal structuring.

Can non-U.S. citizens buy franchise businesses in the United States?

Yes, non-U.S. citizens can purchase franchise businesses in the United States, though the process involves additional requirements and complexity, as demonstrated in Eric's sale. International buyers typically need to obtain appropriate visa status (E-2 investor visa, EB-5 immigrant investor visa, or other business visas), provide additional documentation for financing and legal purposes, work with immigration attorneys alongside business attorneys, demonstrate sufficient capital and business experience, and meet all standard franchise qualification requirements. The added complexity means these transactions often take longer to complete and require experienced professionals who understand both business sale processes and immigration requirements. We Sell Restaurants has experience navigating international buyer situations and coordinating the additional legal and procedural steps required for successful closings.

What are the typical fees associated with selling a Smoothie King franchise?

When selling a Smoothie King franchise, sellers should expect several fees and costs. The franchise transfer fee is $25,000 per location (as noted in Eric's case with two stores), business broker commission is typically a percentage of the sale price, legal fees for transaction documentation and review, and accounting fees for financial statement preparation and verification. Buyers also face costs including the purchase price and down payment, SBA loan fees if financing is used, training costs at Smoothie King corporate headquarters in Dallas, and ongoing royalties of 6% and marketing fees of 3% of sales. While these fees represent significant expenses, working with professional representation typically results in higher sale prices and smoother transactions that more than offset the costs, as Eric confirmed when he stated the money spent was "well worth every penny."

How does the franchise approval process work when selling?

The franchise approval process is a critical component of any franchise sale and can significantly impact the timeline. The typical process involves several steps. First, the seller notifies the franchisor of intent to sell according to franchise agreement terms. Next, the buyer submits a formal application to the franchisor with financial statements, background information, and business experience. The franchisor reviews buyer qualifications against their standards for financial strength, business acumen, and brand fit. An interview process occurs between the buyer and franchise representatives, potentially including corporate headquarters visits. The franchisor conducts background checks and verifies financial information. Finally, formal approval is granted (or denied) by the franchisor. Throughout this process, coordination between seller, buyer, broker, and franchisor is essential. Smoothie King, like most established franchises, has specific qualification criteria and approval procedures. Experienced franchise brokers understand these processes and help prepare buyers for successful approval, while also maintaining communication with corporate offices to address any concerns that arise.

What makes a "turnkey" restaurant operation valuable to buyers?

A turnkey operation—one that's ready to operate immediately upon purchase—commands premium value in the restaurant marketplace. Eric's Smoothie King locations exemplified this with trained staff of 16 employees across both locations, established operational systems and procedures, loyal customer bases built over more than a decade of operation, proven financial performance with consistent earnings, existing vendor relationships and supply chains, and locations with favorable lease terms in strategic areas. Buyers value turnkey operations because they minimize startup risk, allow for immediate revenue generation, require less intensive owner involvement during transition, and provide established cash flow to support financing. For sellers, maintaining strong operations throughout the sale process preserves value and attracts serious, qualified buyers willing to pay appropriate prices for profitable, well-run businesses.

Ready to sell your restaurant or franchise? Contact We Sell Restaurants today to learn how our certified restaurant brokers can help you achieve a successful sale, just as we did for Eric Pierce-French and his Smoothie King franchises.