Multi-Unit Franchisee Magazine Issue II, 2017 - Page 76

ExitStrategies BY DEAN ZUCCARELLO AND DAN COLLINS Refranchising Gains Selling corporate stores benefits all players F ranchising has proven to be a successful business model across a wide spectrum of industries us- ing multi-unit retail distribution. At its heart, franchising allows everyone to focus on what they do best: manage, support, and grow the brand in the case of the franchisor, with franchisees focused on delivering a high-quality, consistent prod- uct or service to the ultimate customer. Refranchising (the sale of franchisor- owned units to new or existing franchisees) allows franchisors to address both finan- cial and strategic goals in their business by optimizing the mix of company and franchised ownership. Refranchising has been a hot topic in the restaurant industry in particular, with a number of national chains executing large-scale refranchising initiatives over the past 5 years. The Cy- press Group led most of these large-scale refranchising programs. We see this activ- ity continuing for the foreseeable future, likely spreading to multi-unit segments outside the restaurant industry. Historically, most franchised restaurant concepts have operated under an owner- ship structure that had the franchisors owning and directly operating a β€œmate- rial” percentage of their overall system. While this ownership percentage has varied from brand to brand, it was his- torically significant, generally in the 25 to 50 percent range. The thinking was that this level of ownership meant franchisors would lead by example, essentially show- ing their franchisees how to operate the business. Additionally, this direct owner- ship was seen as the best way to align the interests of the brand and its operators. As it has matured, the chain restaurant business has become much more complex. Increased competition, governmenta °Ι•Τ΄)±…Ρ₯½Έ°‘…Ή•Μ₯ΈΡ‘”έ½Ι­™½Ι”°…Ή½Έ΄)ΝΥ΅•ΘΑΙ•™•Ι•Ή•Μ‘…Ω”΅…‘”Ρ‘”‰ΥΝ₯Ή•ΝΜ)΅½Ι”‘…±±•Ή₯ΉœΡ½‘…δΡ‘…Έ•Ω•ΘΈ5…Ήδ)‘…₯ΉΜ‘…Ω”½Ή±Υ‘•Ρ‘…ЁΉ•άΡ‘₯Ή­₯Ήœ)₯́Ή••‘•ΡΌ…‘‘Ι•Ν́ѽ‘…ηŠé•ΉΩ₯Ι½Ή΅•ΉΠ°)έ₯Ρ Ι•™Ι…Ή‘₯Ν₯Ήœ₯Ή₯Ρ₯…Ρ₯ٕ́‰•½΅₯Ήœ)…Έ₯΅Α½ΙΡ…ΉΠ‰Ι…ΉΝΡΙ…Ρ•δΈ±Ρ‘½Υ )™Ι…Ή‘₯Ν½Ί‘…Ω”‘₯ΝΡ½Ι₯…±±δ™₯Ή”΅ΡΥΉ•(άΠ$)5U1Q$΅U9%PI9 !%M$MLU%$€°€Θ€ΐΔ€ά)Ρ‘•₯ȁ½έΉ•ΙΝ‘₯ΐ½˜ΥΉ₯ΡΜ°Ρ½‘…ηŠéɕ™Ι…Έ΄)‘₯Ν₯Ήœ₯Ή₯Ρ₯…Ρ₯ٕ́ѕΉΡΌ‰”±…ɝ•Θ…Ή)‘…Ω”΅½Ι”ΝΡΙ…Ρ•₯Œ₯΅Α±₯…Ρ₯½ΉΜΈ)%ΈΙ••ΉΠΙ•ΝΡ…ΥΙ…ΉΠ₯Ή₯Ρ₯…Ρ₯Ω•Μ°έ”)‘…Ω”Ν••Έ™Ι…Ή‘₯Ν½ΊΌ…́™…ȁ…́ι•ΙΌ)½΅Α…Ήδ΅½έΉ•Ι•ΝΡ…ΥΙ…ΉΡΜΈQ‘”ΡΙ•Ή)ѽ݅ɐ±…ɝ•Θ…Ή΅½Ι”Ν½Α‘₯ΝΡ₯…Ρ•Ι•Μ΄)Ρ…ΥΙ…ΉΠ™Ι…Ή‘₯Ν••Μ‘…́‘•±Α•½Α•Ι…Ρ½ΙΜ)‘•…°έ₯Ρ Ρ‘”΅½Ι”½΅Α±₯…Ρ•‰ΥΝ₯Ή•ΝΜ)έ”Ν•”Ρ½‘…丁%Ё…±ΝΌ‘…́Ι•…Ρ•‘•΅…Ή)™½Θ±…ɝ”΅Ν…±”Ι•™Ι…Ή‘₯Ν₯Ήœ₯Ή₯Ρ₯…Ρ₯ٕ́₯Έ)Ή…Ρ₯½Ή…°ΝεΝΡ•΅ΜΝՍ …́]•Ή‘ηŠeΜ° Υɝ•Θ)-₯Ήœ°ΑΑ±•‰•—ŠeΜ°…ΉQ$Ι₯‘…εΜΈ)MΌ…ΈΙ•™Ι…Ή‘₯Ν₯Ήœ‰”„ƒŠqέ₯Έ½έ₯»Št)™½Θ™Ι…Ή‘₯Ν½Ί…Ή™Ι…Ή‘₯Ν••Μό%Έ½ΥΘ)•αΑ•Ι₯•Ή”Ρ‘”…ΉΝݕȁ₯́ε•ΟŠQ₯˜‘•Ν₯Ή•)…Ή•α•ΥΡ•½ΙΙ•Ρ±δ°έ₯Ρ ‰•Ή•™₯Ρ́™½Θ)‰½Ρ ™Ι…Ή‘₯ͽȁ…Ή™Ι…Ή‘₯Ν•”Έ)Ι…Ή‘₯ͽȁ‰•Ή•™₯ΡΜ)Ι…Ή‘₯Ν½Ί…₯Έ₯ΈΝ•Ω•Ι…°έ…εΜ聙…ΝΡ•Θ)ΝεΝΡ•΄Ι½έΡ °₯΅ΑΙ½Ω•™₯Ή…Ή₯…°΅•ΡΙ₯Μ°)…ΉΙ•Ρ…₯Ή₯ΉœΩ…±Υ•‘½΅”½™™₯”•΅Α±½ε••Μ)‰δΑΙ½Ω₯‘₯ΉœΡ‘•΄έ₯Ρ ΅½Ι”‘…Ή•ΜΡΌ)…‘Ω…Ή”ΈMΑ•₯™₯Œ‰•Ή•™₯Ρ́₯Ή±Υ‘”θ+Šˆ …Α₯Ρ…°Ι•‘•Α±½ε΅•ΉΠΡΌΝεΝΡ•΄)Ι½έΡ ₯Ή₯Ρ₯…Ρ₯Ω•Μ+Šˆ‰₯±₯ΡδΡΌ½ΑΡ₯΅₯锁…Α₯Ρ…°ΝΡΙՍΡΥΙ”+ŠˆI•‘Ս•Ω½±…Ρ₯±₯Ρδ₯ΈΙ•Ω•ΉΥ”°•…ΙΈ΄)₯ΉΜ°…Ή™Ι•”…Ν ™±½ά+Šˆ ½΅ΐΝ…±•ΜΙ½έΡ ‘Ι₯Ω•Έ‰δ„Ι”΄)Ή•έ•™½Ύ½Έ΅•ΉΤ°΅…Ι­•Ρ₯Ήœ°Ρ• ΄)Ή½±½δ°Ι•₯΅…”₯Ή₯Ρ₯…Ρ₯Ω•Μ°•ΡŒΈ+Šˆ9•άΥΉ₯ЁΙ½έΡ έ₯Ρ •αΑ…Ή‘•)™Ι…Ή‘₯Ν•”™½½ΡΑΙ₯ΉΠ°₯‘•…±±δ₯Έ½΅‰₯Ή„΄)Ρ₯½Έέ₯Ρ Ή•άΑΙ½Ρ½ΡεΑ•Μ…Ή½ΙΑ½Ι…Ρ”)₯Ή₯Ρ₯…Ρ₯ٕ́₯Ή±Υ‘₯Ήœ•Ή‘…Ή•Ι•…°•ΝΡ…Ρ”)…Ή½ΉΝΡΙՍΡ₯½ΈΙ•Ν½Υɍ•Μ°₯Ή•ΉΡ₯Ω•Μ°•ΡŒΈ+ŠˆΉΡΙ•ΑΙ•Ή•ΥΙ₯…°½Ι½έΡ ½ΑΑ½ΙΡΥΉ€΄)Ρ₯•Μ™½Θ‰Ι…Ή•΅Α±½ε••Μ)Ι…Ή‘₯Ν•”‰•Ή•™₯ΡΜ)Ι…Ή‘₯Ν••Μ°΅½ΝЁ½™Ρ•Έ±…ɝ•Θ½Ή•Μ°…±ΝΌ)‰•Ή•™₯Ё™Ι½΄Ι•™Ι…Ή‘₯Ν₯Ήœ₯Ή₯Ρ₯…Ρ₯Ω•Μ°…Μ)Ν••Έ₯ΈΡ‘”₯ΉΙ•…Ν”₯Έ±…ɝ”΅Ν…±”‘•…±Μ)‘•ΝΙ₯‰•…‰½Ω”ΈMΑ•₯™₯Œ‰•Ή•™₯Ρ́₯Ή±Υ‘”θ+Šˆ%΅ΑΙ½Ω•™₯Ή…Ή₯…°΅•ΡΙ₯Μ‰δ±•Ω•Θ΄)…₯Ήœ•α₯ΝΡ₯Ήœ½Ω•Ι‘•…+Šˆ‰₯±₯ΡδΡΌ₯΅ΑΙ½Ω”ΥΉ₯Π΅±•Ω•°ΑΙ½™₯ΡΜ+ŠˆΙ½έΡ ₯Έ„™Ι…Ή‘₯Ν•—Šé½Ι”‰Ι…Ή)™Ι½΄‰½Ρ …ΕΥ₯Ι•ΥΉ₯Ρ́…ΉΡ‘•₯ȁ™Ι…Έ΄)‘₯ͽˊé‰Ι…Ή₯Ή₯Ρ₯…Ρ₯Ω•Μ+ŠˆQ‘”½ΑΑ½ΙΡΥΉ₯ΡδΡΌ…‘ΥΉ₯Ρ́₯Έ„)ΝΥΑΑ±•΅•ΉΡ…°‰Ι…Ή½Θ‰Ι…Ή‘Μ+ŠˆΉ‘…Ή•…Ι••ΘΑ…Ρ‘́™½ΘΡ‘•₯Θ)Α•½Α±”°™Ι½΄5́…Ή΅…Ή…•ΊѼ™Ι½ΉΠ΄)±₯Ή”•΅Α±½ε••Μ) ½Ή±ΥΝ₯½Έ)U±Ρ₯΅…Ρ•±δ°έ”‰•±₯•Ω”Ι•™Ι…Ή‘₯Ν₯Ήœ₯Μ)‘•Ι”ΡΌΝх丁Q‘•Ν”₯Ή₯Ρ₯…Ρ₯ٕ́‘…Ω”Ρ‘”)…‰₯±₯ΡδΡΌΙ•Ω₯Ρ…±₯锁…Ή₯΅ΑΙ½Ω”Ρ‘”½ΐ΄)•Ι…Ρ₯½Ή…°ΝΡΙ…Ρ•δ½˜΅…©½Θ™Ι…Ή‘₯Ν•)½Ι…Ή₯ι…Ρ₯½ΉΜΈΙ…Ή‘₯Ν½Ίչ‘•Ι½₯Ήœ)Ρ‘”ΑΙ½•Ν́…Ι”™₯Ή‘₯Ήœ„Ι•Ή•έ•Ν•ΉΝ”½˜)ΑΥΙΑ½Ν”°…Ή…Ι”™½ΥΝ₯Ήœ½Έ₯ΉΉ½Ω…Ρ₯½ΉΜ)…Ή‰Ι…Ή΅…Ή…•΅•ΉΠέ₯Ρ‘½ΥЁ‘…Ω₯ΉœΡΌ)έ½ΙΙ䁅‰½ΥЁ‘…₯±δΙ•ΝΡ…ΥΙ…ΉΠ½Α•Ι…Ρ₯½ΉΜΈ)Ι…Ή‘₯Ν••Μ…Ι”Ι…ΉΡ•Ρ‘”½ΑΑ½ΙΡΥΉ₯Ρδ)ΡΌΙ½άΡ‘•₯ȁΑ½ΙΡ™½±₯½Μ±…ɝ”•Ή½Υ ΡΌ)‰”…‰±”ΡΌΝΡΙ•…΅±₯Ή”½Α•Ι…Ρ₯½ΉΜ°±•…΄)₯ΉœΡΌΙ•…ѕȁ•™™₯₯•Ή₯•Μ°Ν½Α‘₯ΝΡ₯…Ρ₯½Έ°)…ΉΝՍ•ΝΜΈ)]‘•Έ‘•Ν₯Ή•…Ή•α•ΥΡ•½Θ΄)Ι•Ρ±δ°Ι•™Ι…Ή‘₯Ν₯Ήœ•Ή½ΥΙ…•ΜΑ…ΙΡΉ•Θ΄)Ν‘₯ΐέ₯Ρ ΝΡΙ½ΉœΑ±…ε•ΙΜ°έ‘•Ρ‘•ΘΉ•ά½Θ)•α₯ΝΡ₯Ήœ™Ι…Ή‘₯Ν••Μ°Ι•…Ρ₯Ήœ„ΝΡΙ½Ή•Θ)½Ω•Ι…±°ΝεΝΡ•΄…ΉΙ½έΡ ½ΑΑ½ΙΡΥΉ₯Ρ₯•Μ)™½Θ…±°₯ΉΩ½±Ω•Έ)Ή°έ‘₯±”Ι•ΝΡ…ΥΙ…ΉΠΙ•™Ι…Ή‘₯Ν₯Ήœ)₯Ή₯Ρ₯…Ρ₯ٕ́ɕ΅…₯Έ„‘½ΠΡ½Α₯Œ°έ”•αΑ•Π)ΡΌΝ•”Ρ‘”‘₯͍ΥΝΝ₯½ΈΕΥ₯­±δ•αΑ…Ή₯ΉΡΌ)Ή½Έ΅Ι•ΝΡ…ΥΙ…ΉΠ°΅Υ±Ρ€΅ΥΉ₯Ёɕх₯°ΝεΝΡ•΅Μ)Ρ‘…Ё…Έ‰•Ή•™₯Ё™Ι½΄Ρ‘”Ν…΅”Ν½ΙЁ½˜)‘εΉ…΅₯Μ•αΑ•Ι₯•Ή•₯ΈΙ•ΝΡ…ΥΙ…ΉΡΜΈ)•…ΈiՍ…Ι•±±Ό₯́ <)…Ή™½ΥΉ‘•Θ½˜Q‘” εΑΙ•ΝΜ)Ι½Υΐ°„ΑΙ₯Ω…Ρ•±δ½έΉ•)₯ΉΩ•ΝΡ΅•ΉΠ‰…Ή¬…Ή…‘Ω€΄)Ν½ΙδΝ•ΙΩ₯•Μ™₯Ι΄™½ΥΝ••ΰ΄)±ΥΝ₯Ω•±δ½ΈΡ‘”΅Υ±Ρ€΅ΥΉ₯Π)…Ή™Ι…Ή‘₯Ν”‰ΥΝ₯Ή•Ν́™½Θ)΅½Ι”Ρ‘…Έ€Θԁ啅ΙΜΈ!”‘…́΅½Ι”Ρ‘…Έ€ΜΤ)ε•…Ί½˜™₯Ή…Ή₯…°…ΉΡΙ…ΉΝ…Ρ₯½Ή…°•αΑ•Ι€΄)•Ή”₯Έ΅•Ι•ΙΜ°…ΕΥ₯Ν₯Ρ₯½ΉΜ°‘₯Ω•ΝΡ₯ΡΥΙ•Μ°)ΝΡΙ…Ρ•₯ŒΑ±…ΉΉ₯Ήœ°…Ή™₯Ή…Ή₯Ήœ₯ΈΡ‘”)Ι•ΝΡ…ΥΙ…ΉΠ₯Ή‘ΥΝΡΙ丁 ½ΉΡ…Π‘₯΄…Π€ΜΐΜ΄(Ψΰΐ΄ΠΔΠā½Θ‘ιՍ…Ι•±±½εΑΙ•Ν͝ɽΥΐΉ‰₯θΈ)…Έ ½±±₯ΉΜ©½₯Ή•Ρ‘”) εΑΙ•Ν́Ι½Υΐ…́„ΑΙ₯Ή₯Α…°(́啅Ί…Ό°™½±±½έ₯Ήœ€Μԁ啅ΙΜ)½˜•αΑ•Ι₯•Ή”₯ΈΡ‘”Ι•ΝΡ…ΥΙ…ΉΠ)…Ή™₯Ή…Ή₯…°Ν•ΙΩ₯”₯Ή‘ΥΜ΄)ΡΙ₯•ΜΈ •™½Ι”Ρ‘…Ё‘”έ…́MY@)…ΉΡΙ•…ΝΥɕȁ½˜Q‘”]•Ή‘ηŠeΜ) ½΅Α…ΉδΈ ½ΉΡ…Π‘₯΄…Π€ΜΐΜ΄Ψΰΐ΄ΠΔΠΔ)½Θ‘½±±₯ΉΝεΑΙ•Ν͝ɽΥΐΉ‰₯θΈ