A key element of maintaining a healthy franchise network is to constantly bring new blood and new energy into your system by selling new franchise units and by helping existing franchisees exit the system. A formally structured franchise resale program increases the probability of a smooth transition from franchisee to franchisee and ensures that this transition will result in an enhancement to the system and not a disruption. Simply put, it is not good for you as a franchisor for locations to close. Closings can be due to health issues, spouse relocation, death, or other issues unrelated to the success of the business model. IBA offers you “boots on the ground” with qualified buyers for franchise sales when you have a franchisee in need of a timely sale.

Additionally, having a structured franchise resale program will give a great deal of comfort to the franchisees in knowing that there is a structured exit process. A franchise resale program encourages franchise owners to manage their business in a way that is focused on building long term value and encourages them to continue to grow their business. This is mutually beneficial for the franchisor and franchisee. The franchisor benefits from additional fees from increased revenues and increased brand recognition.

Franchisors typically promote “Being in business for yourself, but not by yourself”. A franchisor that included a structured franchise resale program as part of their franchise system enhances their value proposition. Franchise candidates will typically give weight in their decision to a brand/concept which has an effective resale program that addresses the fact that franchisees will eventually exit the system.

Why use IBA to administer your resale program?

Using IBA to administer your franchise resale program will allow your franchise development department to focus on new unit goals versus spending time and resources in selling existing franchises. Many states require business sale intermediaries to have active real estate broker licenses to sell an existing franchise and all IBA business brokers are fully licensed to conduct these transactions in the states in which they serve clients. Additionally, franchisors will reduce their liability by not being involved in the valuation process or facilitating transactions, as in many states franchise resales are regulated by real estate and business brokerage regulations. IBA also has vetted collaborative partner offices in the business brokerage industry, if we don’t serve the area with direct representation where the franchise is located. Why search the Internet for a business broker, when you can receive a quality referral from one of the oldest business brokerage firms in the United States.