The franchise resale market is evolving rapidly, presenting both challenges and opportunities for franchisors. For those clinging to the good old days of simple transfers, that time is over. Instead, complexities reign supreme with more parties than ever participating in deals, driving longer days on market. To maintain a competitive edge and ensure smooth transitions, understanding the emerging trends in the resale market is critical. Here are top key trends shaping franchise resales in 2025 and how franchisors can adapt to them.

1. Increased Deal Complexity Demands Specialized Expertise

Franchise transfers are no longer straightforward transactions involving just the buyer and seller. A successful transfer often requires coordination between multiple parties, including the attorneys representing both sides, the landlord who must consent to a lease assignment, and the bank with their own legal teams. Additionally, the franchisor’s counsel typically plays an integral role in ensuring compliance with brand standards to simultaneously transfer and assign rights for a new franchise agreement.

This intricate web of stakeholders and requirements has led franchise brands to increasingly turn to specialists, like the Certified Restaurant Brokers at We Sell Restaurants to manage the process. These professionals bring the expertise needed to navigate complex transactions, maintain seamless communication between parties, and ensure all documentation and deal flow are handled efficiently. Their involvement minimizes delays, reduces risk, and ensures a smoother path to closing for all parties involved.

Today’s franchise buyers are more informed and discerning than ever. Financial transparency has become a non-negotiable factor in the resale process. Prospective buyers demand access to detailed, accurate financial records to evaluate the return on investment (ROI) before making a decision.

For franchisors, this means ensuring that franchisees maintain meticulous financial records. Standardizing financial reporting across the network can builds buyer confidence but can also expedite the sales process. Tools that centralize and streamline financial data, paired with guidance from professionals, help franchisors meet this expectation while safeguarding brand integrity.

3. Rising Interest in Turnkey Opportunities

In 2025, more buyers are prioritizing “turnkey” franchise opportunities—established units that are operationally sound and require minimal transition efforts. These buyers are attracted to businesses where systems, teams, and customer bases are already in place, reducing the time and resources needed to hit the ground running.

To capitalize on this trend, franchisors can focus on assisting sellers in preparing their units for resale. This involves addressing operational inefficiencies, ensuring brand compliance, and providing support for smooth ownership transitions. Marketing these opportunities as “ready-to-run” businesses can draw interest from a larger pool of buyers, particularly those new to franchising.

Franchisors should weigh the capital and time required to bring units up to current refresh standards against the desire to transfer the unit. If a store is underperforming with the current operator, you may consider allowing some time for any refresh or upgrade to be performed as a better alternative than losing a deal. Since interest rates are at elevated levels, securing additional financing for remodeling could pose challenges for potential buyers. To facilitate transactions, franchisors might consider offering flexibility by allowing up to 24 months—or a similar timeframe—for upgrades to be completed post-sale, helping to make deals more feasible in the current economic environment.

4. Avoiding Legal Risks with External Valuation Resources

In today’s litigious environment, franchisors are increasingly distancing themselves from providing valuations or opinions of value for units within their system. A deal that appears to be proceeding smoothly can quickly derail, potentially dragging the franchisor into disputes if they have set value expectations or failed to respond to parties appropriately. Offering valuations also presents a clear conflict of interest, as the franchisor must remain impartial to those exiting or entering the system. As a result, General Counsel for many brands now advises against involvement in this area.

Beyond the legal risks, franchisors must also navigate regulatory requirements. Brokerage activities, including charging fees for facilitating transactions, require proper licensing in 14 U.S. states. To avoid potential legal complications and ensure compliance, franchisors are increasingly relying on external valuation and brokerage experts. This approach not only eliminates the risk of impropriety but also allows franchisors to focus on supporting their system without entangling themselves in transactional disputes.

That is leading to outsourced expertise which is on the rise because of this trend. Franchisors are increasingly turning to specialized resale brokers and consultants to manage the complexities of franchise resales. This outsourced expertise streamlines the process, ensuring that transactions are handled professionally and that both buyers and sellers receive the support they need. The alternative to an outsourced resource is using the time and effort of the internal franchise development team. Most franchise development professionals lack the experience to hold complex transaction together, work deal components with landlords or offer expertise on lending. For that reason, the trend is to carefully vet and use the services of an external vendor.

Brands should be careful to confirm proper licensing and insurance for anyone recommended by the brand, ensuring that they are licensed in all states where resales or transfer may occur. By partnering with resale specialists, franchisors can focus on their core operations while relying on experts to manage valuations, negotiations, and legal requirements. These professionals also ensure compliance with franchisor standards and create a seamless experience for all parties involved, ultimately protecting the brand’s reputation.

5. Rising Number of Franchise Resales

The "Silver Tsunami"—a term referencing the wave of baby boomers reaching retirement age—is reshaping the franchise landscape. Many older franchisees are nearing the stage where exit strategies become a necessity. Compounding this trend is a growing reluctance among younger generations to take over family businesses, leaving franchisors to address the gap in succession planning.

Between now and 2030, over 10,000 Americans will turn 65 every day. While some franchisees may express intentions to continue working, the reality is that many units are at risk if proper exit strategies aren’t in place. This trend is particularly pressing in the restaurant sector, where operators who weathered the challenges of COVID-19 and an uncertain economy are now eyeing 2025 as the year to transition out, buoyed by improving business optimism.

Franchisors should anticipate a sharp rise in resales as this pent-up demand is unleashed. Without adequate preparation, some locations may face closures instead of successful transitions. To mitigate this risk, franchisors should proactively conduct risk assessments on units nearing renewal—especially those operated by franchisees over the age of 55. Early conversations about succession planning and next steps can ensure a smoother handoff, preserving the brand’s presence and performance in these locations.

By addressing these demographic shifts head-on, franchisors can position themselves for growth and avoid the potential pitfalls of the resale surge.

Summary

 The franchise resale market is entering a pivotal phase, shaped by increasing complexity, heightened buyer expectations, and a wave of impending retirements among long-time operators. For franchisors, these trends represent both challenges and opportunities. By proactively addressing issues like financial transparency, turnkey readiness, legal risks, and succession planning, brands can position themselves to thrive in this dynamic environment. Partnering with specialized brokers and adopting strategic solutions will not only streamline the resale process but also safeguard the integrity and growth of franchise systems. The time to prepare for the future of franchise resales is now—ensuring smooth transitions, satisfied stakeholders, and a robust foundation for continued success in 2025 and beyond.

If you need assistance in creating a resale strategy for your brand that delivers results, contact us at this link.