Franchisor News Spring 08

the
f r a n c h i s e r e s a l e s
eventual exit from the system as the
cycle comes to its natural conclusion.
The start of the journey
REVOLUTION
At inception when a franchisee has
just signed up, they are raring to go,
the adrenalin is flowing and both
Now all franchisors can provide a comprehensive resales service for their
franchisee and franchisor are looking
franchisees by using the unique proven Franchise Resales Process.
forward to a mutually rewarding
future together; the franchisee is
As a no cost option for franchisors, Franchise Resales provides
reliant on the franchisor for advice,
a complete process to deliver successful resales
training and guidance. This is the
juvenile stage in a franchisee’s life
�Exit Planning Seminars and Briefings
and is a period that may only last a
few weeks, in fairly simple business
�Written guide to selling your franchised business
models, or may last several months
�Production of a detailed prospectus of sale
with more complex systems. It is a time
where the franchisor is giving training
�Agreed independent business valuation
and guidance and the franchisee is franchisee is aware of what their a franchisee’s development there is
�Sourcing prospective purchasers
taking, and hopefully absorbing, the options are from the start. often a close, friendly relationship
knowledge. However, this can change with the franchisor, especially if it
�Introduction of screened prospective
as the franchisee gains in confidence. The finishing line is in sight is the person who recruited them purchasers for franchisor approval
Having passed the bottom of the in the first place and the businesses
�Advice and guidance with negotiations
Making tracks emotional learning curve, franchisees have developed to mutual benefit.
During the adolescent stage, the settle into a routine and simply get on So here the franchisor has a choice;
�Completion of the sale
franchisee feels it doesn’t need the with the task in hand. They may need either accept the status quo and take
franchisor’s help very much and help from time to time, especially the view the current level of MSF is
Franchise Resales also facilitates franchisors
possibly starts to exert a little of their in relation to business planning all they will get out of the territory
independence; this is the first of the and growth, but for the most part or try to find ways to encourage
own exit routes through our confidential
two danger zones in the life cycle. It is they are usually pleased with their further growth through incentives.
Mergers and Acquisitions Service
quite possible that the franchisees will decision to join and hopefully enjoy Otherwise they should start to discuss
start to resent the franchisor and their it. This adult stage is where the canny the franchisees’ sale and exit from
fee payment as their confidence grows; franchisor will alter the style of the the system so they can put in a new,
but it also quite likely that it is now relationship to be more consultative dynamic franchisee who will take the
they may ‘hit the wall’ and say they than demanding, because it is from business onto new heights. It is not a
want to leave. They are at the bottom the adult stage that the strength of sin for a franchisee to get comfortable
of the emotional learning curve that the franchise develops. If you haven’t and ease off, it’s just not the best
every franchisee goes through. Now done it earlier, this is the time that situation for the franchisor.
the euphoria of the start up has worn the franchisee should be encouraged
off, the realities of franchise ownership to scope out their future plans and Benefit from an exit plan
have hit home and the hard work include discussion on their exit. All franchisees have a shelf life. The
has begun. There is a real risk at this time period will depend on various
Franchise Resales provide a total end to end ser vice to franchisees who
stage of a franchisee wishing to quit Warning signs factors and will vary from franchise
are considering selling their businesses which has been described as:
and, given this fairly early point in the The second danger zone occurs in system to franchise system as they
business life cycle, it is highly likely that the senior stage or, as it is more travel along their life cycle. The P ossibly the most efficient Resales Process
it is going to be too early to achieve a often referred to, the comfort zone. franchisor needs the discernment
Available in UK Franchising.
successful sale, and so closure is a real Here franchisees really do know what to recognise that the end is in sight
risk here. they are doing, or think they do, and before the franchisee starts to plateau,
it is here where many franchisors therefore a structured exit plan can be
The Resales Revolution is HERE!
This is where having structured exit see Management Service Fee (MSF) put in place to enable the franchisee
planning and providing information income plateau as franchisees take to optimise their sales value and for
To find out more call Derrick Simpson on
about the whole resales process from their foot off the accelerator and the franchisor to move ahead with a
01562 881023, direct on 07802 567597
day one is important as it means a the business coasts. At this stage in new incumbent.
or e-mail derricks@franchiseresales.co.uk
www.franchiseresales.co.uk
www.franchisornews.co.uk | 32
Page 1 | Page 2 | Page 3 | Page 4 | Page 5 | Page 6 | Page 7 | Page 8 | Page 9 | Page 10 | Page 11 | Page 12 | Page 13 | Page 14 | Page 15 | Page 16 | Page 17 | Page 18 | Page 19 | Page 20 | Page 21 | Page 22 | Page 23 | Page 24 | Page 25 | Page 26 | Page 27 | Page 28 | Page 29 | Page 30 | Page 31 | Page 32 | Page 33 | Page 34 | Page 35 | Page 36 | Page 37 | Page 38 | Page 39 | Page 40 | Page 41 | Page 42 | Page 43 | Page 44 | Page 45 | Page 46 | Page 47 | Page 48 | Page 49 | Page 50 | Page 51 | Page 52 | Page 53