Imagine a family dynasty unraveling in a blaze of boardroom betrayals, whispered secrets, and a patriarch who just won't let go. If that sounds familiar, you've probably binge watched “Succession” on HBO. But as Rob Morrison, Chief Business Officer at We Sell Restaurants, quipped during his recent session at the Franchise Business Review Operations Summit, "Great TV. Terrible succession planning."
The good news? Unlike the Roy family, most franchise brands don't have to crash and burn when leaders transition. In his engaging 20minute presentation, "Plan for the End from the Start - Why a Robust Franchise Resales Program is Important for Franchise Brands," Morrison unpacked how treating resales as a core growth strategy, rather than an afterthought, can futureproof your system, boost validation, and turn potential chaos into seamless continuity. Drawing from a decade in restaurant brokerage and hundreds of deals, Morrison's talk was equal parts cautionary tale, practical playbook, and rallying cry for franchise leaders.
Whether you're a franchisor navigating unit turnover or a franchisee eyeing retirement, here's why resale planning isn't just smart—it's your secret weapon for sustained success.
The Hidden Cost of Ignoring Resales: Chaos Over Continuity
Every franchise system hums with the rhythm of transitions: owners retire, relocate, or chase new horizons. "The problem isn't that these transitions happen," Morrison explained. "The problem is that most brands don’t plan for them."
When resales are sidelined, the fallout is swift and severe. Growth stalls, validation sours, and brand perception takes a hit. Morrison shared a gut-wrenching real world example: A multiunit owner of over 150 fast food locations passed away suddenly, leaving his family in financial freefall. Without leadership, revenue cratered, triggering bankruptcy and the closure of more than 50 units in just six months. Hundreds of jobs vanished, rippling pain through employees and local communities.
"This is the chaos your brands want to avoid," Morrison warned. On the flip side, proactive planning transforms exits into assets. It safeguards cash flow, retains customers and staff, and signals to prospects: “We support you from entry to exit.” In essence, succession isn't an administrative chore, it's a business strategy that preserves enterprise value and fuels development.
Real Stories, Real Stakes: Lessons from the Trenches
Morrison's talk was peppered with anecdotes that hit home, illustrating how small oversights snowball into big problems, or how smart moves spark triumphs.
Consider the multistate sandwich brand franchisee desperate to sell her portfolio in Georgia and the Carolinas, (plus one other territory). She lined up qualified multiunit buyers from within the system, only for the franchisor to move the goalposts repeatedly. First demanding the new owner relocate across states, then rejecting partial deals. "She will eventually exit that franchise system," Morrison predicted. "What will she say when prospective franchisees ask her about the system? I suspect she’ll tell new franchisees to run away, quickly." Morrison termed this the “Hotel California” franchise where you can check in but you can never check out.
The moral? Botched resales poison your Franchise Disclosure Document (FDD) stories and erode trust.
Contrast that with a struggling sandwich shop resale. The seller chalked up poor performance to a "tough market" and offloaded it at a steep discount. The buyer, however, rolled up his sleeves: He prioritized labor efficiency, built a reliable team, and hit the streets for local marketing. Within a year? He was Franchisee of the Year, with the highest year-over-year sales growth. "It wasn’t the market; it was the commitment to building the asset that was missing," Morrison noted. Valuations hinge on cash flow multiples. Accurate books and operational discipline aren't optional; they're your equity builders.
And a franchisor cautionary tale: A well-meaning Franchise Business Consultant shared valuation advice and comps, sparking a buyer dispute that dragged the brand into a costly settlement. "Unless your legal counsel has specifically signed off, steer clear of valuations, Morrison advised. Franchisors should educate, enforce standards, and engage third-party experts like brokers, CPA’s and attorneys rather than play dealmaker.
Building a Resale Culture: From Day One to Deal Closed
So, how do you flip the script? Morrison laid out a roadmap starting with mindset: Frame franchises as buildable assets from Discovery Day onward. "When franchisees know from day one that their goal is to increase the value of their business, they make smarter decisions," he said. This fosters accountability. They begin investing in people, ops, and a reputation for long term wealth, not just quarterly wins.
The Franchisor's Playbook
Your role? Guide without gripping the wheel. Normalize exit talks early (it's not taboo. “Sell” isn't a four-letter word). Identify at-risk units (declining performance, nearing retirement) and engage pros for objective facilitation. Train your team on processes, handle upgrades reasonably and ensure fees flow correctly.
We Sell Restaurants Franchisor Resale Checklist is a gamechanger: It covers triggers for resale discussions, standards for handoffs, and post deal development rights. "It’s not meant to slow you down—it’s meant to keep you consistent," he said. Brands that outsource to experts like We Sell Restaurants report retaining units that "would otherwise go dark," as one CEO discovered after three years of resistance.
Franchisee Readiness: Prep Like You're Selling Your Dream Home
For owners, success starts long before listing. "You wouldn’t put your house on the market with a dripping faucet and a barking dog," Morrison joked. Clean financials (beyond QuickBooks scribbles), leases with remaining option years, maintained equipment, and a polished online rep are all critical. Byyers Google you first. Aim for 1–2 years of prep; profitability isn't just today's paycheck, it's tomorrow's multiple. Lenders crave earnings consistency and growth runways, like untapped catering or delivery potential.
Timeline for Triumph: When to Talk Exits
Morrison broke it down by years in system:
Years 1–5: Seed the idea at conferences and check-ins. "We’re going to help you build something valuable, something that can be sold, passed down, or scaled." This normalizes planning and sharpens records.
Years 5–8: Get granular. Grooming family? Expanding? Early intel protects continuity and cuts stress.
Brands embedding this, via field visits and celebrating smooth handoffs, see skyrocketing satisfaction and validation. One restaurant chain, after finally partnering with We Sell Restaurants, now handles half its nationwide resales, stabilizing net growth.
Key Takeaways: Turn Turnover into Strength
Morrison wrapped with a mic drop truth: Succession planning “is” growth strategy. It fortifies operations, amps profitability, and shields your pipeline, proving your brand endures every stage. "It’s not just about who’s leaving; it’s about protecting everyone who’s staying."
Download his tools today: The Franchisee Resale Checklist and Franchisor Checklist spark immediate action, clarifying roles and runways.
As Morrison closed, "Every resale tells a story about your brand. Does it whisper stability and success... or scream chaos?" At the FBR Summit, the message was clear: Plan now, thrive forever.
Rob Morrison is Chief Business Officer at We Sell Restaurants, the nation's largest restaurant brokerage. For more insights on developing a resale program for your brand, explore information at this link.