Resale Programs For Franchise Systems: A Different Perspective On Franchisees Exiting The System

The sale of franchised units often are associated with low sales, an underperforming operator, or a poor market- in essence, a failing store with an owner desperate to exit the system and a franchisor eager to bring in a new operator to save the unit and the brand reputation in the local market. Although distressed franchised units for sale exist in any franchise system, such units typically comprise only a portion of the total franchised units for sale at a given time. Other common reasons for sales of franchised units are due to franchisees seeking to exit the system to pursue other investment opportunities or prepare for retirement with no viable successor, situations where the franchisee is unwilling or unable to adapt to changes in the market or new initiatives implemented by the franchisor, a realization that the brand or owning a franchise does not meet the franchisee's expectations, or as an alternative to termination following a franchisee's breach and failure