4 Tips to Build A Resale Program Now

The Advisory Board Podcast –

The Exit Strategy Playbook with Pete BaldineWelcome back to another episode of The Advisory Board Podcast! As always, we bring in experts from the franchise community to provide real, actionable advice that helps you make meaningful changes in your franchise system. We’re all about helping your units succeed today while also setting you up for a successful exit strategy down the road.

This episode is proudly sponsored by ClientTether—a game-changer in franchise sales automation and customer engagement. Big thanks to them for supporting the show and helping franchise owners grow their businesses effectively!

The Gray Tsunami:

 Franchising’s Aging DemographicsIf you were with us at the Let’s Grow event, you heard us buzzing about a big challenge in the industry—the Gray Tsunami. Every day, 1.2 million people in the U.S. turn 65, and about 35-40% of franchise owners fall into the Boomer category. This presents a huge opportunity—and challenge—for franchise systems as many longtime owners look to retire.

That’s why we brought in Pete Baldine, President of Moran Family of Brands, which operates Mr. Transmission, Milex Complete Auto Care, Turbo Tint, and Alta Mere Automotive Outfitters. Pete has spent decades in franchising, building proactive systems to help franchisees successfully transition out of their businesses.

Longevity & The Exit DilemmaAt Moran Family of Brands, 33% of franchisees have been in the system for 20+ years, and 16% for 30+ years. While that longevity is impressive, it raises a crucial question: How do we help these owners exit successfully without shrinking the system?Pete shares how his team proactively plans for franchisee exits—instead of leaving owners to figure it out alone. By implementing a strong resale program, Moran helps franchisees exit on their terms, ensuring they maximize their equity and transition to the right buyer.

Why Franchisors Need an Exit Strategy

Too often, franchisors focus solely on new franchise sales, neglecting end-of-cycle support for existing owners. But failing to help franchisees exit properly can result in units closing, lost brand equity, and declining system strength. Pete’s solution?

• Start the conversation early – Moran tracks franchisee renewal dates a year in advance and starts discussing exit strategies well before expiration.
• Understand valuations – Educating franchisees on how EBITDA multiples affect their business’s worth and ensuring their P&Ls are in order well before selling.
• Facilitate strong buyer matches – Using tools like the SpotOn Profile from Rebecca Monet’s Zoracle Profiles, Moran ensures incoming franchisees are aligned with the system’s top performers.
• Assist in finding buyers – Rather than forcing franchisees to find their own buyers, Moran actively supports the process, preventing deals from falling through.

What Happens If You Don’t Plan?Franchisors who ignore exit strategies risk:

• Aging franchisees who hold onto territories but stop growing their businesses.
• Poor resale processes that lead to franchisees closing shop instead of selling.
• System-wide stagnation, as untapped markets sit underutilized.

Pete shares a real-life win: A longtime Moran franchisee, hesitant to sell, was guided through the resale process and handed off his store to a new owner. The result? The new franchisee brought fresh energy, increased revenue by 30%, and is now looking to buy two more locations.Building the Culture of Exit PlanningAt Moran, exit strategy isn’t an afterthought—it’s discussed in Discovery Day! Franchisees enter the system knowing there’s a roadmap for both success and exit. This gives them confidence that when the time comes, they have the franchisor’s full support.

Final TakeawaysFranchise success isn’t just about getting in—it’s about getting out the r