Franchise Resales are Redefining Growth: Tips for Navigating the Resale Market

The Franchise Leadership & Development Conference (FLDC) has long served as a vital pulse check on the evolving franchise landscape. This year, one theme took center stage: franchisors are shifting focus beyond recruiting new owners to proactively managing franchisee exits. No longer a footnote, succession planning and resales are now front and center, as brands recognize that sustainable growth requires attention to the full lifecycle of their units.

A standout moment at the conference came when Darrel Johnson, CEO of FRANdata, presented a chart illustrating the steady climb in franchise transfer activity. In 2024, the transfer rate reached 4.1 percent, the highest mark in five years of internal data. This trend signals a maturing industry where transitions are becoming as critical as expansions.

Our data at We Sell Restaurants confirms this strong momentum heading into 2026. Year-to-date figures reveal a 37.2 percent increase in overall transactions through the third quarter, compared to the same period in 2024, with franchise resales climbing even higher at 62.7 percent, nearly double the broader rate. This surge reflects both shifting economic conditions and evolving strategic priorities, though this is considerably stronger than the market at large, with BizBuySell’s Quarterly Insight Report for the same period. That showed restaurant transactions down six percent for the same period among general business brokers.

FranData forecasts a tougher year ahead – soft sales, declining unit ROI, squeezed franchisor budgets, slower new-unit growth, operational optimization mandates, and tighter capital. Each headwind, however, creates tailwinds for resales. Below, we map every prediction to actionable resales strategies.

Challenging conditions will fuel resale surge

• Softer sales environment: Buyers favor proven resale units over riskier new builds

In a climate where sales are softening, buyers are more cautious with capital, and proven performance matters. Resales will benefit as they have proven stability, an existing customer base, and an operational history. Detailed financial records and strong validation from current owners help reassure prospective buyers and speed up deal timelines, all of which benefit franchise buyers eager to hit the ground running. Franchisors should be prepared to handle a higher number of resale transactions.

• Declining unit ROI: Multi-brand franchisees are seizing underperforming resales as turnaround opportunities

Lower-performing units aren’t necessarily a setback. For many, they are an opportunity for a turnaround. Franchisors can identify these locations early and trust more experienced multi-brand operators who have experience. By offering operational guidance, marketing support, or limited-term incentives, these new franchisees can transform underperforming units into strong success stories for the brand.

• Slower new unit growth: Fewer new builds mean higher demand for existing operations

With development pipelines slowing, resale opportunities are becoming a growth driver. Franchisors should make sure their internal teams or outside partners are equipped to manage these resales efficiently. Creating clear resale systems and timelines keeps momentum high and ensures franchise territories stay active and productive.

• Optimization focus: Resale buyers excel at refreshing and improving performance

Resale buyers often bring fresh energy and ideas to existing operations. Franchisors can capitalize on this by offering post-transfer training, marketing refresh packages, and operational toolkits to help new owners quickly modernize and improve performance. This not only boosts systemwide sales but also protects brand reputation.

• Budget pressure: Third-party experts help offset marketing and sales costs

As franchisors tighten development budgets, outsourcing the resale process becomes more appealing. Partnering with specialized third-party experts allows brands to market and sell existing units with no upfront cost. This saves corporate resources while ensuring every resale opportunity receives professional marketing, valuation, and buyer screening.

• Tight capital access: Positive cash-flow resales are easier to finance than new builds

In today’s economy, where construction timelines and material costs can be unpredictable, launching a new build often takes longer and comes with higher expenses than anticipated. A resale, on the other hand, provides clarity from the start as the cost to begin operating is known and the business is already equipped and established. This creates a more certain and accessible opportunity for potential franchisees who want to invest confidently and get up and running faster.

The resale market is growing, and forward-thinking franchisors are seizing the opportunity to redefine growth. Success is no longer measured just by new unit openings; it’s about how strategically you manage transitions, maximize existing assets, and empower new owners to drive performance. Now is the time to act and capitalize on this momentum.

Robin Gagnon is the co-founder and CEO of We Sell Restaurants, the nation’s largest and only restaurant broker franchise.