Lessons from FLDC: Why Every Franchise Brand Needs a Defined Resale Strategy
The Franchise Leadership & Development Conference (FLDC) always offers a pulse check on what’s next in the franchise world. This year, the conversation was unmistakable, franchisors are no longer focused solely on recruiting new owners. They’re turning their attention to what happens when those franchisees eventually decide to exit. A chart revealed at the conference shows that franchise transfer activity is rising year over year and in 2024 was at 4.1%. That means more than four out of every brand’s units changed hands in 2024.
Our internal data at We Sell Restaurants indicate that 2025, which is not reflected here, will peg an increase as well over last year. In our current year to data numbers, compared to the same period in 2025, We Sell Restaurants is ahead by 37.2% over last year’s transactions while franchise resales are up 62.7%, nearly double the rate.
Why? Darrel Johnson, CEO of FRANdata offered some insights into the overall franchise business model, each of which tie into why resales would be more robust this year.
Softer Sales Environment – A softer sales environment leads to less deployment of free capital in new stores affecting openings while favoring resales since this buyer is acquiring certainty or more knowledge of the predictive performance of the units.
Declining Unit ROI’s – For the same reasons, a more risk-averse buyer will acquire a resale opportunity and either work it for a turnaround or believe he or she is buying at the low point. This is versus the deployment of new capital to build units that will have a softer performance.
Slowing New Unit Growth Rates – Slowing new growth rates overall will favor a resale market versus new build since supply follows demand. Without new units, buyers are looking at existing stores.
More Optimization, Product Innovation – Another trend highlighted by FRANdata’s research also favors resales. Units on the resale market which are under performing will benefit from innovation and optimization of current processes to improve, something that resale buyers and turnaround specialists, favor.
Franchise Budgets Under More Pressure – Brands that are feeling the pressure of budget shortfalls may pull back on development budgets, however, third parties like We Sell Restaurants cover the costs of marketing and selling resale units, at no cost to the franchisor.
Capital access pressured by tougher lending standards, high interest rates – The ramp up to profitability places strain on debt service and liquidity. Resale units are acquired at lower rates as turnarounds, places less pressure on the financial elements. In most instances, resales are selling with positive cash flow that easily passes the debt hurdles placed on the deal by lenders.
These are only some of the reasons resales, transfers, and succession planning have moved from side discussions to center stage. It is clear that most forward-thinking brands are redefining what franchise growth means. It’s not just about how many units you open, it’s about how well you manage transitions when owners are ready to sell.
And that shift in mindset is exactly where We Sell Restaurants is helping the industry evolve.
The Rising Wave of Franchise Resales
The increase in franchise resales is moving from anecdotal to verifiable, with data points like the ones from FRANdata and with industry giants like We Sell Restaurants able to show significant trending and it reflects deep structural changes across the industry.
There are also societal factors weighing on the industry since many of today’s franchise owners represent the first generation of operators who joined during the rapid expansion of the 1990s and early 2000s. Now, they’re approaching retirement age. The “silver tsunami” of ownership transitions is beginning, and the pace is accelerating.
With post-pandemic profitability waning but new store expansion stalling, it’s an ideal window for resales and owners looking to exit while maximizing their return. Even the increase in private equity in the franchise model drives the resale market. Brands can generate quick value for PE partners by encouraging low performers to exit and replacing them with high value, high intentioned owners of these resale units.
For brands that have prepared, this environment represents enormous opportunity. For those that haven’t, it poses a real risk.
When franchisees sell quietly or shut down rather than transition their businesses, the system loses not just a location but institutional knowledge, brand reputation, and local market momentum. A single mishandled resale can ripple through a region, affecting performance and confidence.
That’s why the conversation at FLDC felt so timely, the industry is realizing that resale readiness is now a brand-health metric.
What Forward-Thinking Brands Shared at FLDC
Throughout the conference, one idea kept surfacing: franchise resales don’t have to be reactive. The best brands are making them predictable, measurable, and profitable.
A breakout session led by Doug Flaig at Stratus Building Solutions was titled Exit Strategies for Franchisees and included Mike Cline of Alliance Franchise Brands, Michael Lassen of Steak ‘n Shake along with Abhi Patro of Firehouse Subs and Paige Robinson of Unleashed Brands. Each shared a unique perspective around these standout practices that franchisors embrace:
Proactive brands track “ownership tenure” the same way they track sales or marketing metrics. Once a franchisee approaches seven to ten years in the system, that location is flagged for an early succession conversation.
Franchise business coaches are beginning to ask questions such as, “What’s your long-term plan?” and “Would you like help building an exit strategy?” These are healthy discussions that prevent last-minute surprises.
By identifying likely sellers early, brands can maintain location continuity, keep revenue in place, and start preparing new buyers months before a listing even hits the market.
Franchisor admitted that for years they avoided the word “resale” because they worried it might signal weakness or franchisee dissatisfaction. That’s changing fast.
Now, brands are reframing resales as part of the natural lifecycle of a thriving system. Owners join, grow, and eventually transition, and each step strengthens the brand when managed correctly.
One person remarked, “We celebrate grand openings, but we should also celebrate successful exits.”
Another takeaway from FLDC: structure matters. The most effective brands treat transfers with the same discipline as new franchise awards. They have dedicated resale coordinators, checklists, and approval timelines.
Clear processes reduce friction between sellers, buyers, and the franchisor. They also improve the buyer’s first impression of the brand. If your resale process feels chaotic or slow, that buyer starts their relationship with frustration, not confidence.
Finally, many brands acknowledged that they can’t (and shouldn’t) manage every aspect of the resale transaction internally. Valuation, marketing, buyer vetting, and financing are specialized skills that require focused expertise.
That’s where We Sell Restaurants fits into the picture. We were grateful to receive a shout-out from the stage of more than one franchise leader at FLDC on how partnering with a dedicated brokerage solution helped them move to a predictable, well-managed transfers that protect brand integrity and support every stakeholder.
The Cost of Ignoring Franchise Resales
It is tempting for some development teams to believe that resales “handle themselves.” After all, the outgoing franchisee finds a buyer, the franchisor approves the transfer, and life goes on — right?
Unfortunately, that assumption often leads to lost opportunities and damaged brand equity.
Here’s what happens when resales aren’t structured:
Every failed resale represents not only a lost franchise fee but also a lost relationship. For brands that invest years building market recognition, allowing a unit to go dark because of poor resale support is a preventable setback.
As one franchisor at FLDC said, “Every successful transfer is development by another name.”
How We Sell Restaurants Helps Brands Structure a Resale Program
At We Sell Restaurants, we’ve spent years perfecting a framework that supports both the franchisor and the franchisee through every stage of the resale process. Our national network of Certified Restaurant Brokers® combines industry-specific expertise with transaction experience across hundreds of franchise systems.
Here’s what an effective resale partnership looks like:
Valuation and Financial Clarity
We start by ensuring each listing is priced correctly based on verified financials, adjusted earnings, and comparable market data. This transparency builds trust between the seller, the buyer, and the franchisor, and it significantly reduces time on market.
Brand-Aligned Marketing
Every listing is positioned within the context of your brand story. We handle confidential marketing, buyer qualification, and lead flow so that only serious, financially ready candidates reach your internal approval process.
Our buyer database, now more than 125,000 strong, provides immediate visibility to motivated operators looking for franchise opportunities.
Streamlined Communication
We integrate directly with franchisor teams to ensure compliance with brand standards and legal requirements. That means your operations and development departments remain informed throughout the sale, but your staff doesn’t have to manage the transactional details.
Deal Support and SBA Financing
Because we specialize in restaurant and franchise transactions, we understand how to position deals for SBA lenders and help buyers secure financing efficiently. This expertise is often the difference between a sale closing in 60 days versus six months.
Data and Reporting
Franchisors receive access to reporting that tracks listings, buyer inquiries, and conversion rates, giving you the same visibility you have over new franchise development.
The result is a seamless process where every transfer feels intentional, consistent, and aligned with your growth goals. Instead of reacting to franchisee exits, your brand gains control of them.
Creating a Resale-Ready Culture
Even with the best systems, success depends on culture. The franchisors making real progress are those who’ve embedded resale discussions into their normal rhythm of business.
Here’s how you can start inside your own brand:
A resale-ready brand isn’t built overnight, but it starts with one decision: to view franchisee exits not as disruptions, but as natural transitions that can strengthen the system when handled well.
A New Definition of Franchise Growth
At this year’s FLDC, one sentiment stood out: The future of franchise development isn’t just about new openings, it’s about sustainable ownership transitions.
When franchisees know they can exit confidently and profitably, they invest more deeply while they’re in the system. When incoming owners see an established process for buying existing units, they feel secure joining the brand. And when franchisors can manage those transitions seamlessly, they maintain continuity, culture, and cash flow.
That’s the true mark of a mature franchise system.
At We Sell Restaurants, we’ve built our entire organization around supporting that maturity. Whether you’re looking to formalize your resale process, analyze recent transfer activity, or create a co-branded resale portal for your franchise network, our team can help you design the right framework from day one.
Because every exit is also an entry — and when it’s managed correctly, both sides win.