Franchisors are responsible for nurturing their network and encouraging growth for as long as possible. One way they can do that is by including exit planning in their franchising process. When a franchisor does this, not only are they able to help franchisees to understand what options are available to them when the time comes to sell or retire from the business. But they are also able to assist with their planning and business targets along the way. Let’s discuss why resales are helpful for both franchisors and franchisees alike!
What happens when a franchisee decides to sell?
Franchisees can need to sell for a range of reasons. They might want to retire, pursue new business ventures or even need to sell quickly because of illness. When a franchisor provides exit planning strategies, franchisees have all the information they need to achieve the best price. Having a plan in place ensures a smooth exit from your network, keeping everyone happy.
Bring in new franchisees
When a franchisee decides to sell, this is your opportunity to bring in a new and enthusiastic business owner who will continue to grow the business and your brand. Choosing the right candidate to purchase a business in your network is vital for success. When your franchisees choose to sell with Franchise Resales, we make sure we understand what you are looking for in a franchisee.
An incoming franchisee is a great way to bring in fresh ideas, a new perspective and potentially added value to your network and existing franchisees.
Achieve the best price
Exit planning can help your franchisees achieve the best possible price for their business. Seeing that a network has highly successful businesses for sale is great for prospective franchisees. When exit planning strategies are provided, franchisees will be able to think about what is important for them in the process of building their business. As well as giving them the right knowledge to achieve a great return on their investment.
Success
Once all territories in your network are sold, not only is this a huge sign of a successful franchise. But it can also help to increase the demand for a resale – when they come along. Mature franchises on average have 10% of their network for sale each year.
Franchise Resales are not bad for your network. Of course, if you have franchisees wanting to sell because they are not happy – this is something that needs addressing internally. But by giving your franchisees a helping hand with their exit planning, you are assisting their success and their smooth departure from the network.
We can help to support your franchisees with a FREE exit planning seminar. These bespoke seminars help your franchisees with their exit planning strategies to ensure they will be as successful as possible. An exit plan is more than just a plan for the end, it is a plan for the journey. In order to be successful, your franchisees must first reach the milestones that are set out in their plan.
Here’s what a franchisor had to say about their exit planning seminar. “Julie provided us with a training session on how to get your business resales ready. This was well-pitched with excellent supporting slides and input. Our franchisees found it very helpful and insightful, many of them have now started implementing some of the changes suggested within their businesses to get themselves in the best position. Julie was very friendly, helpful and informative, a great session!”