What Is a Franchise Exit Strategy—and How Can It Help You Maximize Your Business Value?
Sometimes when entrepreneurs start on the path to franchise ownership, they focus too much on profit-building and not the big picture. The big picture, in this case, is having a franchise exit strategy.
Before you can consider the beginning of your career in franchising, you must consider the end. A franchise exit strategy enables a business owner to minimize or liquidate their interest in their franchise location(s) while still making a significant profit.
Of course, this only works if the company remains profitable. Franchisees must have a strategy for selling their company, whether they decide to retire or move on to other ventures. Even if the sale is unplanned, a formal exit strategy will allow you to leverage your franchise location’s true value.
Let’s explore this in more detail.

What is an Exit Strategy?
As mentioned, a franchise exit strategy allows franchise owners to leverage their business’ true value. It is defined as a contingency plan used by an investor, trader, venture capitalist, or business owner to liquidate a stake in a financial asset or sell tangible business assets after defined conditions are met or exceeded. When an investment or business plan achieves its benefit target, you may implement an exit strategy.
Why Franchise Owners Decide to Exit
An exit strategy can be used in several situations, including:
- Getting out of a losing investment or closing a business
- Transferring ownership in the event of the owner’s death or retirement
- The franchise owner is retiring and needs to cash out
- A drastic shift in marketing conditions due to legal reasons (i.e., estate planning)
After
exiting their businesses, 42% of owners plan to retire, 39% intend to invest in another business, and 31% want to pursue philanthropy or civic engagement. When choosing an exit strategy, 70% of business owners prefer internal transfers, 17% opt for external sales, and 13% remain undecided.
As a business owner, one of your primary concerns is reducing loss and making your franchise profitable, and having a franchise exit strategy (or “exit plan”) can help. Exit strategies and other money management methods can help traders and investors boost their trading by suppressing emotion and lowering risk. A franchise exit strategy also allows franchise owners to exit their business while preserving its market value and ensuring a seamless ownership transition.
An investor should set a point at which they will sell for a loss and a point at which they will sell for a profit before entering a trade.
Why Every Franchise Owner Needs a Franchise Exit Strategy
Not every entrepreneur buys a franchise to run it forever. Some want franchise ownership to be a chapter in their portfolio and use it as a stepping stone to other business ventures. For others, it is a way to build funds for their retirement. No matter what your reason, a franchise exit plan is necessary. It ensures the smooth transition of ownership and enables you to shape your future, whether that’s staying on as a consultant or an active or silent partner.
Although most surveyed business owners are aware of succession planning and understand how to start, many don’t see it as urgent—63% say it’s “too early” and 45% are “too busy” to begin. And, one-third of surveyed business owners admit they either don’t have a long-term plan or are unsure about what will happen to their business after they leave.
To avoid a painful (or impossible) departure from your franchise, you need to plan your franchise exit strategy early.
How to Plan a Franchise Exit Strategy Early
Consider these key steps to help you plan a franchise exit strategy effectively:
- Set long-term goals
- Keep financial documentation current
- Engage with your franchisor early
- Consult a certified franchise consultant or business exit planner
Whatever alternative you choose, the most important thing is to communicate with your franchisor about how the exit process functions, know what franchisor permits are needed to sell, and any other criteria the franchisor might have, such as equipment upgrades.
The good news is that you have many exit opportunities. You can successfully navigate your franchise experience from start to finish by preparing ahead of time and working with your franchisor.

Secure Your Legacy with the Right Franchise Consultant
We understand the complexity of both franchise acquisition and exit strategies. At Hundred Acre Consulting, our team provides comprehensive guidance, ensuring you successfully develop and execute a profitable exit plan while also identifying and securing your ideal franchise opportunity.
To discuss your specific franchising needs and learn how our expertise can benefit your career, please contact us today.



















































