A demographic shift of unprecedented scale is reshaping the franchise restaurant landscape. Known as the "Silver Tsunami," this wave of retiring baby boomers, with over 10,000 reaching retirement age daily every single day, is creating a surge in franchise restaurant resales. For long-time franchise owners, retirement has become a pressing reality, and for franchisors, this generational transition presents both challenges and opportunities.

Why Do Baby Boomers Matter?  

Baby boomers are the defining generation for America. Born between 1946 and 1964, during a post-World War II baby “boom”, they have significantly shaped American society. The sheer number of this generation has led to an super-size outsized impact on the United States on everything from cultural to pollical issues, and of course, the economy. Their contributions range from driving technological innovations to spearheading civil rights movements and creating Fortune 500 companies. Baby boomers also played a pivotal role in shaping consumer markets, housing trends, and educational institutions to accommodate their large numbers

Economically, baby boomers are considered the wealthiest generation in U.S. history. As of 2023, they owned 52% of the nation's net wealth, amounting to approximately $76.2 trillion—a figure that has grown substantially since the 1990s. Their wealth is largely concentrated in real estate and stock portfolios, with their collective holdings far exceeding those of younger generations like Gen X and millennials.

However, these baby boomers don’t only control up to 72% of the nation's wealth, they also own 41% of all US businesses and that equates to 12 million small-to-mid-sized enterprises including restaurants.

This accumulation of wealth has positioned baby boomers as key players in the economy, particularly as they enter retirement age. Their transition is reshaping industries such as franchising and real estate, with many seeking to sell businesses and pass on assets to younger generations.

This influx of resales is transforming how franchisors approach succession planning, system stability, and buyer recruitment. Without proactive strategies, this demographic shift could lead to closures and operational strain. However, franchisors who embrace this trend can leverage it as a powerful driver of growth and innovation. This article explores how the "Silver Tsunami" is impacting franchise resales and what franchisors can do to stay ahead.

What Is the ‘Silver Tsunami’?

The "Silver Tsunami" refers to these baby boomers reaching retirement age with approximately 10,000 Americans turning 65 every single day. Many of these individuals have spent decades building their franchise businesses and are now looking for ways to exit profitably while enjoying their retirement years.

This trend spans multiple sectors, from quick-service restaurants to fine dining. As baby boomer franchise owners prepare to pass the torch, the volume of franchise units listed for resale has and will surge dramatically, making resales a defining feature of today’s market.

While this wave of retirements poses challenges, it also creates opportunities for franchisors and buyers alike. Understanding the scale and implications of the Silver Tsunami is essential for navigating its impact effectively.

The Impact on Franchise Resales

Increased Resale Activity

The Silver Tsunami has led to a noticeable uptick in franchise resale activity. Retiring owners reacting at the same time can lead to an oversupply of inventory, ultimately affecting pricing. Franchisors who wish to protect the value of their brand want to be at the forefront of understanding how many of their units may change hands. They also need to develop protocols around net worth and liquidity as well as training requirements for transfers. They may be different than for new sales. Overall, be aware of the secondary market for your restaurant brands as buyers look to step into established businesses. There could also be heightened competition among buyers, particularly for sold out concept, high-performing units, or strategically located units.

System Stability

For restaurant franchisors, the surge in resales is both an opportunity and a risk. On one hand, it allows them to bring newly rejuvenated buyers into their system who are open to new ideas, training and generally, leading to higher sales.

On the other hand, a lack of planning can lead to instability if units don’t transition smoothly. There may be a need for additional training classes or a modification of brand requirements if buyers have existing experience with other brands. Above all, keeping doors open and closues at a minimum is the overarching need. Closures caused by failed transitions can damage brand reputation and negatively affect Franchise Disclosure Document (FDD) metrics and franchisee validation.

Broker Demand

With more franchisees looking to sell, demand for professional brokers has skyrocketed. Certified Restaurant Brokers® play an essential role in managing resale complexities such as valuations, legal compliance, and transaction efficiency. Their expertise ensures smoother transitions while protecting both buyers and sellers.

Challenges for Franchisors

Succession Planning Gaps

Many franchisees lack clear succession plans, leaving franchisors scrambling when units are suddenly listed for resale. These gaps can lead to operational disruptions or closures if not addressed proactively. That’s why brands like We Sell Restaurants offer educational opportunities for brands including e-books, checklists, and guides, along with in-person seminars and webinars. These tools prepare franchisees to consider their eventual exit strategy. Education is the watchword for brands with their franchisees.

Risk of Closures

Units without viable resale plans are at higher risk of shutting down. This impacts both the franchisor’s bottom line and market presence, weakening brand equity in competitive regions. The loss of important real estate can occur when no one is focused on potential units reaching the end of their franchise agreement. Every Franchise Business Consultant should routinely be asking about succession planning and contingency plans.

Resource Strain

Managing a high volume of resales can overwhelm franchisor teams, diverting resources from growth initiatives. Balancing the needs of exiting franchisees with incoming buyers requires careful planning and allocation. That’s why outsourcing the labor intensive task of resales to a third-party can be a key strategy for handling franchise resales.

Opportunities Amid the Shift

Resales as a Growth Strategy

Franchisors can turn resales into a growth strategy by proactively managing transitions and actively engaging to not only transfer but also sell development agreements to candidates provided by the third-party funnel. Highlighting resales as part of the franchise lifecycle attracts buyers who value stepping into established businesses with proven cash flow. This approach ensures operational continuity while contributing to system stability.

Expanding Buyer Pools

The Silver Tsunami has opened doors for younger generations like Millennials and Gen X entrepreneurs. They are increasingly drawn to resale opportunities due to their stability and immediate revenue potential. By offering tailored training and support, franchisors can make ownership accessible to first-time buyers.

Leveraging Professional Brokers

Partnering with Certified Restaurant Brokers® helps franchisors navigate the complexities of resales efficiently. Brokers handle valuations, marketing strategies, buyer recruitment, and legal compliance while allowing franchisors to focus on system growth.

How Franchisors Can Prepare

Build Proactive Resale Strategies

Franchisors should regularly review their franchisees’ succession plans and identify high-risk units likely to be listed soon. Preparing these units through operational improvements or marketing updates makes them more attractive to buyers. Review lease and franchise agreements and pull together a target list of anyone who has a franchise or lease expiration date less than three years in the future to begin the discussions. A restaurant resale can take up to nine months to sell and transfer so this can’t be a last minute exercise.

Communicate the Resale Process

Transparency is key. Franchisors should provide resources and training that help franchisees navigate the resale process effectively. Clear communication reduces delays or disputes during transitions. Connect with partners in the space and offer times they can provide educational seminars, conduct roundtables at your annual conference or provide booth space at each conference.

Partner with Experts

Brands that are licensed and insured nationwide, offer trust partner relationships to deal with the turnover of these units. Certified Restaurant Brokers have specialized expertise that ensures smooth transactions while protecting brand integrity. Engaging and building professional relationships to handle resales early in the process minimizes risks associated with high-volume transfers.

The "Silver Tsunami" is reshaping franchise resales across industries, presenting both challenges and opportunities for franchisors. By adopting proactive strategies—such as succession planning, buyer recruitment initiatives, and broker partnerships—franchisors can turn this demographic shift into an engine for growth.

Resales aren’t just about passing ownership; they’re about strengthening systems for future success. With careful preparation and expert guidance, franchisors can confidently navigate this wave while ensuring thriving outcomes for their brands.

Are you ready to tackle the Silver Tsunami? Contact We Sell Restaurants today to learn how we can help you manage franchise resales efficiently while driving growth in this evolving market.