How to Build a Winning Franchise Resale Program in 4 Steps
Written By Pete Baldine
I’ve been in franchising since 1980. That means I’ve seen just about everything — the good, the bad, and the ugly. And if there’s one lesson I’d put in bold for every franchisor out there, it’s this: helping franchisees exit is just as important as helping them launch.
That’s why I joined my friendDave Hansen, CEO ofClientTether and host of The Advisory Board Podcast, to talk about something most brands don’t want to think about — resale.
If you’re not building strong resale pathways, you’re shrinking your system on the back end while you’re working hard to grow it on the front end. And in today’s franchise world, where 40% of owners are Boomers, you can’t afford to ignore it.
Watch the full episode on YouTube
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Why This Matters
I’ve spent decades bringing new franchisees into systems. And here’s the kicker: if you don’t help them exit, all that effort can disappear overnight.
“You spend all this time bringing new franchisees into the system, and then on the other end, if you’re not helping them exit with a strong resale program… they’re closing their doors and leaving.”
This isn’t about theory. It’s about protecting equity. Owners pour their life into these businesses. A resale program is how you make sure they — and your brand — reap the benefits.
Step 1: Plan Renewals Years in Advance
I keep a franchise expiration report on the corner of my desk 365 days a year. No joke. When I budget and plan, that’s where I start.
Why? Because you can’t wait until the last 90 days to have the resale conversation. By then, it’s too late to clean up the numbers or find the right buyer.
“At least a year in advance, we start contacting the people who are coming up for renewal. If you want to sell, list it with us now.”
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Step 2: Clean Up Your Numbers Early
I can’t tell you how many times an owner has said, “Pete, I’m ready to sell.” And then I look at their P&Ls and say, “You’re not. Not yet.”
The SBA wants to see three years of clean P&Ls and tax returns. If you’ve been stuffing personal expenses into your business to dodge taxes, guess what? You just hurt your valuation.
“Sometimes I’ve had people come to me and say, ‘I want to sell,’ and I’ll look at their P&Ls and say, it’s going to take you a couple of years to clean these up.”
That’s the hard truth. You can save on taxes, or you can maximize valuation. You can’t have both.
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Step 3: Vet Buyers Like It’s Discovery Day
Here’s another mistake: letting franchisees go find their own local broker. Sure, they’ll bring people to the table — but half of them will say, “I want the cashflow, but I don’t want the franchise.”
That’s a disaster. Culture, customers, employees — they all suffer.
At Moran, we use assessments and tools to match buyers against our top performers. It’s not about rubber-stamping anybody who writes a check. It’s about protecting the system.
“Having a process to vet these candidates ensures you’re bringing in solid candidates who will take the ball and run with it.”
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Step 4: Expect the Unexpected
Look — life happens. Illness, divorce, burnout, family obligations. Owners don’t always get to exit on their timeline.
That’s why franchisors need to stay close to their people. Know their families. Know their circumstances. When something shifts, you can step in early and keep the business from going under.
“Life happens. Illness, divorce, or family obligations can force an exit mid-cycle. You’ve got to be ready to step in quickly.”
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A Story That Proves the Point
I’ll be honest. When some of our legacy owners — 30, 40 years in the system — decided it was time to retire, I was nervous. Who could possibly run those stores as well as they did?
But here’s what happened: new owners came in with fresh energy, new ideas, and numbers that were up 30% over some of our best legacy performers.
That’s the upside of resale done right. It’s not just an exit. It’s new blood, new energy, and growth.
Gratitude for the Host
Dave Hansen is more than a host — he’s someone who genuinely cares about helping franchise systems succeed.
“Dave, thank you for having me. This was a great conversation. It’s important for franchisors to have these discussions and build systems that support their people — all the way through to the exit.”
If you’re a franchisor, here’s my advice: make resale part of your culture from day one. Talk about it in Discovery Day. Teach it at conference. Plan for it in your budgeting.
Connect with me:LinkedIn |Accelerated Development, Inc.
Watch the full episode →YouTube
Listen to the podcast →Spreaker
Explore the full series →The Advisory Board Podcast
Learn more about franchise growth tools:ClientTether.com |ClientTether Features |LinkedIn