Why Proactive Planning is the New Best Practice.
As a franchise consultant, I often remind franchisors that the most valuable conversations happen before they become urgent. Nowhere is this truer than in the areas of Franchise Agreement Renewals and Franchise Resales—two pivotal moments that can either strengthen a franchise network or create operational friction if mishandled.
Following recent discussions and insights shared at a best-practice seminar organised by the BFA here are the takeaways I’d encourage all franchisors to embed into their systems and culture.
Franchise Renewals: Don’t Wait for the Franchisee to Blink First.
Yes, franchise agreements typically place the onus on the franchisee to initiate renewal within a designated timeframe—but the reality is, smart franchisors aren’t waiting around.
Best practice is to lead the renewal process proactively. This starts with the basics:
- Track all key contractual dates—including renewal notice periods—in a CRM or shared diary system (across multiple people) to avoid missed opportunities or last-minute decisions.
- Start renewal conversations well in advance. Proactivity signals professionalism and foresight, and it opens space for meaningful dialogue about future plans.
Equally important is what happens before the renewal window. From day one:
- Talk about exit planning positively. Understanding your franchisee’s long-term vision allows you to align support and strategy early.
- Conduct and document regular performance reviews throughout the franchise term. This builds a solid foundation for renewal when performance is strong, but also provides a mechanism to:
- Tackle performance issues that might make renewal inadvisable, or
- Adjust terms (e.g. reduce territory size) as a condition of renewal.
Franchise Resales: Long-Term Planning Drives Real Value.
Resales are a natural and healthy part of a maturing franchise network—but they only work well when planned properly.
The most effective resales take 2–3 years of preparation. That’s how long it takes for a franchisee to:
- Ensure their accounts reflect maximum profitability,
- Build an attractive narrative around the business, and
- Position themselves for a maximum-value exit.
If a sale is rushed, both the franchisee’s value and the franchisor’s brand can suffer. Encourage your franchisees to think of resales as a strategic, not reactive, event.
During the sale process, which can take up to 18 months, keep the franchisee motivated and supported. This is not a time for disengagement—it’s a time for partnership.
And crucially, engage the right professionals:
- Franchise brokers
- Franchise solicitors
- Accountants who understand resale valuation
These experts not only smooth the process but help maintain network integrity.
Final Word: Build It into Your System.
Whether you’re managing renewals or resales, make sure:
- Your Franchise Agreement explicitly covers these processes,
- Your Franchise Manual documents them in operational terms, and
- Your head office team is trained to guide franchisees through both with confidence.
Proactive planning isn’t just best practice—it’s the mark of a resilient franchise system. Let’s make sure yours is set up to thrive at every lifecycle stage.