A franchise transfer can be an opportunity to replace an average or below-average franchisee and turn around a struggling location or territory. Yet many franchisors limit their involvement in the transfer process to collecting a transfer fee, conducting a credit check and financial review, and providing some abbreviated training. In contrast, franchisors that take an active role in the resale process are more likely to gain a qualified and prepared franchisee.

Given the opportunity to design a process that could enhance the likelihood of success for transferee candidates, most franchisors would likely undertake the effort. This article provides two simple rules franchisors need to follow in developing a formal resale program or refining an existing one.

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