We need to CONNECT THE DOTS regarding franchise resales!!

The Franchiseresales team was honored and excited to take part in the recent Business Roundtable discussions this past week at the 2016 Annual IFA Convention in San Antonio. With impressive attendance and participation by franchising professionals, suppliers, franchisors and franchisees, it allowed us the privilege to truly understand what is happening "on-the- ground" in the franchising world regarding franchise resales.

The clearest "take aways" we gained from these convention roundtable discussions regarding franchise resales, illustrated an interesting disconnect between the perception and the reality of a franchise resale.

The clearest "take aways" we gained from these convention roundtable discussions regarding franchise resales, illustrated an interesting disconnect between the perception and the reality of a franchise resale.

* The overriding upside of resales for the franchisor is the immediate increase in profitability/revenue delivered via new blood and enthusiastic buyers that take on under-performing locations.

* The acknowledgement that the resale of a well-established, successful franchisee that has created a profitable exit resulting with a high return on their initial investment...is a prize story that the franchisor can use for recruiting new franchisees....and they often do.

YET.......

* The most common hurdle that many franchisors create for themselves is that they do not have a solid process nor dedicated team member for their resales. So in most cases it is an ignored task that slowly chips away at the quality of the brand.

* And because of this hurdle many franchisors prefer to keep a "hands-off" approach that will inevitably cost them revenue and weaken the brand because of disengaged franchisees.

EVEN THOUGH...

* The final word from EVERY franchisor that had to "manage through" their resales, especially if they were for underperforming units........ ALWAYS resulted in an overwhelming turn-around in the unit's performance.

This interesting list of observations about how franchisors view and handle their resales today, solidifies the message that an informed and dedicated team member with proper resources for their franchise resales can increase revenue and improve the overall health of a franchise system.

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