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 as the franchisor will benefit from additional fees from increased revenues.
Franchisors typically promote “Being in business for yourself, not by yourself”. A franchisor that includes 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 which has an effective resale program that addresses the fact that franchisees will eventually exit the system.
