President Pete Baldine and retired legacy franchisee Jay Pond share how Moran Family of Brands has turned resales into a real win-win – helping owners move on and setting buyers up for accelerated success

Pete Baldine
The brand president explains how Moran Family of Brands built a structured resale strategy – and why franchisors should take the lead in supporting franchisees through the transition.

At Moran, we are fortunate to have many legacy franchisees who’ve been with us for decades.While this is a great benefit, it can also be challenging when it’s time for them to retire.We developed a strategy that allows them to exit when the time comes, get their equity out, and protect the company’s interests by ensuring the stores continue to operate at a high level. We discuss succession planning and our resale program on Discovery Day, before they even become franchisees. We also help franchisees plan for a resale early on. I review the expiration report and contact franchisees at least a year in advance to determine if they want to renew or sell. Since resales can take time, it’s important to plan early. If they decide to sell, we send a listing agreement and start the process as soon as possible.

Our process for ensuring a smooth handover begins with the candidate selection. Resale candidates go through the same six-step Discover Moran education process as new franchisees.We take them all the way through to assess fit, and we don’t present them to the seller until we’re confident they are qualified and viable buyers. Our onboarding and training for resale buyers is identical to that for new franchisees. Some buyers worry about taking over an existing location, especially a successful store that’s been well-managed. They’re concerned about their ability to maintain and grow such a high-performing business. Honestly, I share that concern too. The key is having strong processes in place, knowing the business, and providing guidance to ensure continued success. Many franchisors don’t get involved in resales, simply approving buyers once they’re found. This is a mistake. The franchisor must have a strong resale program to help franchisees exit and protect the system. My advice for success: get involved and create a proactive strategy that benefits the seller, buyer, and franchisor.

Jay Pond
Jay is a legacyMoran franchisee from Jackson, Mississippi who successfully exited and retired after 38 years. Here’s what worked, what surprised him, and his advice for others preparing to sell.

When I first thought about selling, my main concern was navigating the exit process smoothly. One of the advantages is having access to a clear exit strategy. Moran Family of Brands taught me how to plan for a successful exit, and that made a big difference. I learned about their five-year exit strategy, which helped me focus on fine-tuning my business – particularly the profit and loss statements – to coincide with that five-year mark.

The most valuable part of the resale process was definitely having Pete and Ben handle the listing, screening leads, managing contracts, and sorting through the legalities. This allowed me to continue focusing on growing my business without being bogged down by the complexities of the sale. After reviewing three years’ worth of P&Ls, Pete showed me a significant increase in the business valuation, which was reflected in the final sale price. The process was pretty much what I expected, as Pete and Ben had already proven their ability to broker successful franchise resales. The biggest surprise was the time it took for the buyer to secure an SBA loan – there were many hoops to jump through. Patience was definitely key! As for what made my location attractive to buyers, I’d say it came down to having a strong, reliable team and being actively involved in my community. My advice to others is simple: plan ahead, build a solid team, market your business, strive for five star reviews, and always see Moran as a partner. Looking back, I wish I’d known just how much patience the process would require, but now that I’m on the other side, I see the value in what I call the three P’s: PLAN, PREPARE, & PRAY. After 38 years of successful business, the time just felt right. The resale was a win-win-win, benefiting me, the buyer, and Moran Industries. I call that a trifecta!
 

Story originally published by Global-Franchise