How a Dedicated Resale Referral Program Supports Franchisors

As the former director of franchise development of a national sub franchise brand, I know firsthand the dedication and investment it takes to retain units, develop new units, and handle Franchise Resale situations.

In today's franchise environment, the definition of brand growth has evolved. It isn't just about launching new stores. Instead, it’s about net restaurant growth. This concept takes into account the addition of new units, but it also highlights the importance of retaining existing ones and minimizing closures. With franchise development leaning so heavily on this idea of net restaurant growth, having a reliable franchise resale program in your toolkit is crucial. A well-structured resale program not only assists in transitions of ownership but also aids in preserving the brand's footprint and fostering overall business sustainability.

1. Initial Meeting and Conversations: A dedicated franchise resale program begins with an initial meeting between the franchisor and We Sell Restaurants. During this meeting, a need for our services is established before we begin to collaborate on a program that meets those needs. Think of it as a friendly, exploratory conversation where we get to understand your unique needs and potential challenges. This step sets the foundation for a personalized and efficient resale process.
   
   
2. Custom Exit Guidebook for the Brand: We Sell Restaurants provides the Franchisor with a custom guidebook that they can share with any Franchisee that expresses an interest in exiting the business which will support the Franchisee in preparing their business for resale.
   
   Imagine one of your franchisees decides it's time to move on or is unsure about their ability to keep the unit. With our custom guidebook in their hands, they'll find the exit process less daunting and more manageable. The guidebook is packed with essential steps and field-tested best practices to prepare their business for a smooth transfer. It also ensures consistency and helps maintain the brand's reputation as a responsive and supportive Franchisor.
   
   

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3. Taking Time to Learn About the Brand: A dedicated effort to understand the franchisor's system and its specific needs when it comes to resales is the foundation of all successful resale referral programs. Throughout the collaboration process, We Sell Restaurants takes time to study the brand. We don’t just help you behind a desk, either. We step into your brand’s world by attending a discovery day, gather information about the onboarding steps and training process, gain an understanding of unique considerations related to the franchise agreement, and become familiar with the brand’s qualifying criteria. This understanding is crucial in identifying potential buyers who are the right fit for the franchise opportunity. By targeting qualified individuals or investors, the program helps maintain the brand's integrity and increases the chances of a successful resale that often leads to new development commitments.

These three steps paved the way for We Sell Restaurants to be invited to a Franchisor Partner’s recent conference. The brand’s interaction with the We Sell Restaurants team lead to an appreciation for our expertise which they wanted to leverage for panel content as well as an exhibiting sponsorship. We proudly accepted the invitation and got to work with our respective panel members to create the content for our presentation. The title of our presentation was “Financing Growth and Resale Strategies.” It was a packed house with standing room only and there was great energy throughout the presentation with much of the discussion surrounding plans to add more units. Franchisees showed their appreciation for their Franchisor being willing to openly speak on the topic of exit strategies and had great questions about the value of their restaurants, timing for selling, and steps to prepare.

Many franchisees approached me after the presentation to discuss selling other concepts so they could put forth more effort and energy into growing with our Partner’s brand. That was a very pleasant and unexpected outcome for both We Sell Restaurants and our Franchisor partner.

This particular Franchisor Partner really understands the value of helping those who have decided to move on and bringing in new, hungry franchise partners who are eager to grow with the brand. The takeaway for all Franchisors should be that “exit” shouldn’t be treated as the four-letter word that it has become.  

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Based on my interactions with the franchisees at this event, I witnessed firsthand how the franchisor’s decision to develop a structured resale program through We Sell Restaurants gave the franchisees some peace of mind.

In conclusion, a dedicated resale program offers invaluable support to franchisors by facilitating the resale process, providing personalized guidance, and aligning with the franchisor's system and needs. By utilizing such a program, franchisors can navigate the resale journey more efficiently, maintaining the brand's reputation and ensuring a successful transition for all parties involved.

For more information on developing a specialized franchise resale program for your brand, schedule a call with me.

Brent Greenwood, Director of Franchise Development, works with all new franchise candidates for the We Sell Restaurants brand. In addition, Brent leads outreach to franchise brands as we help restaurants increase net restaurant growth.

Brent is a visionary sales management professional with an emphasis on franchising. He is accomplished in establishing start-up operations, turning around struggling operations and spearheading improved customer service internal controls - ultimately attaining and exceeding revenue goals and improving customer satisfaction and long term retention.