Being a franchisor means being responsible for a business network and brand. The franchisor is ultimately responsible for the brand and the franchisees within. This involves providing the overall support and resources the franchisee needs to succeed as well as ensuring that the franchises are being operated to a certain standard. They are responsible for training and recruiting new franchisees as part of growing the franchise and brand.
So what happens when a franchisee wishes to move on?
The franchisor has the final say, however the seller also has a vested interest in what happens next. How do you protect your franchisees and do what is best for them whilst looking after your business and brand?
One of the best things you can do for your franchisees is to ask them to plan their exit. No matter if they have just started or if they have been with you for a number of years. The best protection for you and for them is an exit strategy. If a franchisee has these plans in place you can be assured that they are working towards an end goal and will be doing everything they can to create a successful business.
The exit plan is just the beginning of a franchisee exit. From the minute they decide to sell their business there are many decisions that need to be made.
One of these is who will be your new franchisee? This is your decision as a franchisor, you know what type of person you want to have in your network.
There are many factors to consider here: can the prospective buyer meet the financial responsibilities of the businesses after the initial purchase. It may be an established business they are buying however there are still ongoing costs once the new franchisee has taken over. The last thing you need is to find a great candidate only to find out they may not have the finances to cope with running a business.
Are they a strong leader? The overall reputation of your brand can suffer even if just one franchise out of many performs badly. You must be able to assess your prospective franchisees on their leadership qualities and experience in leadership roles.
Communication skills are also vital for your new franchisee, not only will they be expected to show excellent customer service skills within their new business they will also have to show they can communicate within the franchise itself. Communication is so important in business, for building relationships between franchisees and franchisors as well as between staff and customers.
Depending on their reason for selling and your relationship with your franchisee finding the right candidate can be a difficult process. They are still responsible for the day to day running of the business and may not have the time to vet all of the possible candidates, which will then fall to you. This is a waste of your time and theirs. Having the right candidate is so important. You will need to have a new franchisee who will push the business forward and make a success of it.
Whilst you are ultimately responsible for the franchise as a whole, the day to day running of the franchises is down to the franchisees, Ensuring that staff contracts are in place with clear roles outlined is something that should be done from the beginning, however it is essential when your franchisee wishes to sell and to ensure a smooth sale of the business.
The franchisee must also make sure that they continues to run the business effectively. This can be difficult during the sale of a business. They may not look as hard or have the time to scrutinise a candidate before passing them on to you. This can be frustrating for you and your franchisee.
You need the FR Factor: Protection for both you and your franchisees.
For your franchisees, deciding to sell doesn’t have to be a hassle. Our process will help them focus on getting their business into the best possible position to sell whilst we screen potential candidates and arrange meetings when we believe we have the best possible person to be your new franchisee.
One of the positives of our system is that it saves you time. You do not have to spend time going through an extensive list of candidates for the right one. We can help your franchisees plan their exit and when the time comes put that plan into motion.
We can help you to protect your franchisees which in turn protects you and your brand. We have over 150 years combined experience in franchise resales. We understand what you expect from your franchisees. We help your franchisees prepare their business for sale, point them in the direction of the right solicitor and banking contacts, offer advice on different aspects of the sale as well as helping your franchisees establish the right price and finding the perfect franchisee.
The most important aspect of your franchisees selling their franchise for them is getting the right price. The most important aspect of your franchisees selling their franchise for you is getting the right franchisee to take over and grow the business.
The upcoming National Franchise Show in Birmingham is the perfect opportunity for you to meet our team. Why not book an appointment and see how we can help to protect you as well as your franchisees. Call us on 01522 246811 or email firstname.lastname@example.org