Exit Strategies for Franchisees: Building a Path to Smooth Transitions

At the 2025 FLDC, industry leaders shared best practices for one of franchising’s most overlooked topics: exit strategies. Moderated by Doug Flaig, CEO of Stratus Building Solutions, the session featured Mike Cline, CDO of Alliance Franchise Brands, Michael Lassen, VP, franchise sales for Steak ’n Shake, Paige Robinson Dosch, VP franchise resales for Unleashed Brands, and Abhi Patro, director, franchising for Firehouse Subs. Together, they outlined how proactive planning and transparency lead to smoother ownership transitions.

Cline opened by emphasizing early communication. “We want our franchisees to let us know ahead of time that they’re considering an exit,” he said. “That allows us to plan and support them properly.” Robinson Dosch agreed, noting that franchisors must make the process easy to navigate. “Use technology and collaboration tools to make it easy to share and submit information,” she said.

Patro reminded attendees that every resale involves multiple parties and timelines. “You’re not selling groceries; you’re selling a business. It takes time to do it right,” he said. He urged brands to build broker, lender, and legal networks to move deals efficiently.

Lassen stressed the importance of education and clean financials. “We promote that constantly, especially if you plan to exit in two or three years,” he said, warning franchisees not to “take their foot off the gas” once they decide to sell. “You have to sprint to the finish.” he said.

Transparency was a recurring theme. “Transparency protects everyone,” said Patro, recalling deals derailed by undisclosed buyer issues. Robinson Dosch added, “Sometimes, closure is the right option. It’s better to protect the brand’s long-term health.”

As Flaig concluded, successful exits aren’t just transactions; they’re about protecting the brand, preserving relationships, and setting the stage for continued growth.