FRANCHISE RESALES PROGRAMME
DESCRIPTION
Once a franchisee has decided they want to sell (or you have decided that for them) it is important to manage the process efficiently and effectively. A clear and transparent process from initial discussion through valuation to completion of the sale reflects well on you and your franchise offering. The ability of franchisees to realise a significant return when they sell the business will often provide a defining moment when a potential franchisee enquires as to the long term prospects (capital asset value) of the franchise. It is important therefore to not only aid the process to run smoothly, but to maximise the return for the franchisee.
OUTCOMES
- Improved relationships with franchisees
- Improved sales conversions of potential franchisees
- Increased revenue (as a percentage of sale value)
- Increased revenue by enabling the outgoing franchisee to be replaced with a higher calibre incoming franchisee
- Less time spent on negotiations and administration
- Enhanced support team morale and motivation
- Increased franchisor revenue and profit
- Increased capital asset value of franchisor’s business
PROCESS
Audit
A review of the franchise resale process is carried out including:
- The initiation of the call to resell
- The valuation process
- The marketing process
- The timescales
- Restrictions and representations within the Franchise Agreement
- The remuneration/sale fees charged
- Approval process for incoming franchisees
- The common problems experienced
Report
The final output of this process will be a clear guide to the processes required to ensure a swift and easy sale of an existing territory, satisfying the requirements of both the franchisor and the franchisee. Recommended strategies, costs and fees, documentation requirements, marketing methods, in-house processes and procedures will be explained in detail, and presented together with specific proposals and projected results.
Implementation
Whilst the report provides clear guidance on implementing recommendations, we will provide support where required to ensure successful outcomes.
