franchiseresales
Plus, given the fact that most in – with all the attendant support regional meetings for example, which
franchisees only sell a business once, processes, etc – you are also supporting will keep the franchisees focused on the
they don’t understand how to approach them at their exit and can demonstrate end game.
it or what the process involves. It is a life cycle for them. This surely will
important not to underestimate this encourage even more prospects to If your franchise has business support
emotion because it is at the root of want to join your network. people working with the franchisees on
most of the angst that can occur in a one-to-one business planning basis,
resales discussions between franchisors This discussion also provides the it is important they also understand the
and their franchisees. opportunity for you to talk about resales processes and especially what
the way to increase the value of your the key levers within your industry
The way to overcome any friction is to franchise opportunity by adhering to sector are that will drive profitable
set out the resales process from day the operating processes and actively growth. By encouraging franchisees
one. Your entire resale process and its driving the business through the to focus on their end game and grow
associated documentation should all be implementation of your marketing from £X profit to £Y profit over a
in a guide selling your franchise. Ideally, activity. An additional benefit is that this number of years to achieve £Z selling
this document would form part of your discussion enables you to demonstrate price, it means growing the sales
operations and procedures manuals. the value of joining your network. You from £A to £C. To do this they need
This means that from day one when the can show the value of the business to implement marketing and sales
franchisee joins, there is a description into which they are buying is not just initiatives and, lo and behold, there is a
of the process of how they leave within about how much they can make in the growth in the franchisee’s business that
the documentation they receive. drawings each year, but that it is about is mutually beneficial as it means you
the totality of the income generated receive growth in management services
The cynical view is that operations through the franchise as they grow fees. It is this combination of mercenary
manuals are never read, but the point the business. This includes drawings, thinking and individual coaching that
is they are read at least once, and the re-invested profits and eventual selling combines within a resales culture.
information will register: there is a price – a fully rounded offering.
process in place, which can be referred Creating a resales culture in your
to in the future. They may not have This initial discussion and supporting network and focusing all franchisees on
instant recall about the detail but the detail in the operations manuals cannot the strategy for their eventual exit will
knowledge that such a document and be the end of the process. To truly bring mutually beneficial growth. Surely
process exists will be there. create a culture that is accepting of that is what this symbiotic relationship
the resales process and one which will
is all about.<
End of the day accept the need for a structured exit
The second step, which in a timeline as well as induction, it is important to
occurs before they get the manuals, maintain the subject as an ongoing
If you missed Derrick’s previous
is to discuss selling as part of the discussion. Clearly, this is not to be the
instalments on franchise resales,
please visit
recruitment process. If, while you key topic at all meetings but to include
www.franchisornews.co.uk or
are discussing your opportunity with exit planning seminars – delivered
call for a free copy of Franchisor
prospective buyers, you can show you either by yourself or using an external
News on 020 8394 5215.
are not only interested in bringing them facilitator – at annual conferences or
Franchisor News | 25
FN_PG24-25_FranchiseResalesWIN09.indd 2 21/09/2009 17:49
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