f r a n c h i s e r e s a l e s
the
FraNchisee
liFe cycle
In the first of a new series,
Derrick Simpson, Managing
Partner of Franchise Resales
Limited, takes us through the
journey of a franchisee from
inception to adolescence and
finally adulthood
Welcome to a new series of articles true for all businesses, I believe the of advertising and recruitment activity
exploring the various elements and overall sentiment to be correct and lies and magazine publishers, exhibition
complexities that comprise a successful this applies to our franchisees and our organisers and recruitment brokers
resales system and which, when fully own businesses, as much as it does to are all focused on achieving this aim.
implemented, will enable franchisors independent non-franchised ones. This is fine as a growth strategy but it
to operate and manage an efficient is essential to keep an eye on the early
and functional exit programme for I have had thousands of conversations sign-ups: the franchisees that have
their franchisees. with franchisees over the years and been in the longest, because it is these
the topic that was very rarely raised who will be seeking to sell and leave,
Over the next five issues, I will be by them was the final goal, their and it is these who you need to support
breaking down the resales process game plan for exit. Some talked about throughout the resale process.
into its core constituent parts. This will handing their business on to their sons
include, the franchise lifecycle, planning and daughters and, yes, some have Every franchisee will go through a
a sale, recruiting for resales, creating actually talked about an eventual sale life cycle and the length of this cycle
a resales culture and franchisor sales. of the business but the vast majority will vary depending on the nature of
Each will be discussed to provide the have not. Nearly always the topic was the business, the returns that have
opportunity for franchisors to decide raised by me. Later on in the series I will been achieved and the personal
how they wish to implement this vital discuss creating a culture that accepts circumstances of the franchisee. All
element of their franchise system. and plans for resales – but for now let’s will at some stage exhibit the various
think about why this should be an issue traits of the franchisee life cycle as they
Starting in this issue I will be addressing for franchisors. move from sign-up through to launch,
one of the real basics of franchising; the growth, maturity and comfort. The
franchisee life cycle. Franchisors are naturally mostly challenge for the franchisor therefore
concerned with attracting new is to be able to address each of these
Fleeing the nest applicants to their brand and stages and, through their support
A wise man once said to me: “The developing their market in the system, maintain the focus of the
only reason to start a business is to sell target territory by taking on new franchisee, so that they continue to
it.” While this is not necessarily totally franchisees. This is where the majority develop their businesses and plan their
Franchisor News | 31
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