Franchise Resales (non-QSR)

July 16, 2023

by a searcher in New York, NY, USA

Does anyone have experience acquiring a franchise resale in non-QSR sectors (e.g. home services, auto, pet care, etc.)? Is it best to target these opportunities by going directly to the franchisor and expressing interest in acquiring from owners potentially looking to exit? Or are there any good brokers / resources that specifically focus on these types of transactions?

Any insights on franchise resales in general would be super helpful!

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Reply by a searcher
from University of Pennsylvania in Portland, OR, USA

The larger franchisors with a stable of brands are more likely to have a dedicated resale team. They also work with 3rd party brokers who focus on resale. It is worth reaching out to them directly. My acquisition was a franchise resale within the Neighborly franchise group which has 19 home services brands in North America. On July 20th at 1pm CST Neighborly is hosting a webinar with their VP of resales and one of their top-sourcing resale brokers. I am part of the webinar as well, speaking about resale and franchises from the buyer-side. Consider joining or at least registering to get the recording if you are open to franchise resales.

https://info.franchise.neighborly.com/advantages-of-resales

I'm two years in and this has worked really well for me and my family - well enough that I'm still hanging around Searchfunder.com because I'm staying in the game for other acquisitions (franchise or otherwise). I appreciate my franchisor, however even the good ones don't have a magic wand that will eliminate risk or guarantee growth. The business acquisition target has to stand on its own merits, then consider whether you can accept the franchisor.

Reply by an intermediary
from Wake Forest University in Winston-Salem, NC, USA

Having handled dozens of franchise resales, the variability here is as great as the number of franchisors. For a small number (IMO) it makes sense to go to the franchisor, but many are set up to handle new franchisees, not resales. Also, many franchisees do not want to make it known to their neighboring franchisees that they are for sale, or even the franchisor until they get an offer in hand, and many franchisors do not buy or operate franchise or corporate locations.

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