Franchise Advisory Board | Expert Franchising Advice for Franchise Leaders Surviving the Gray Tsunami: A Franchisor’s Guide to Boomer Retirements
Oct 8, 2024
41:59
In this lively episode of The Advisory Board Podcast, host Dave Hansen sits down with Chris Baker, President of Franchise Flippers, to discuss the pressing issue of the "Boomer Retirement Crisis" and its significant impact on franchising. Chris shares how nearly 60% of all franchises are currently owned by baby boomers, many of whom are nearing retirement, presenting both challenges and opportunities for the industry. The episode delves into the importance of succession planning, the growing number of franchise resales, and the need for proactive franchise strategies to navigate this "gray tsunami."Chris kicks off the conversation with a fun anecdote about how he lost his first job in the U.S. — thanks to a long-awaited $50 tip from none other than Bill Murray. From there, the episode transitions into more serious discussions on franchise resales, exploring how unplanned exits and non-renewals can damage brand equity. Chris explains the importance of helping franchisees exit gracefully and with dignity, which in turn preserves the health of the overall franchise system.The two also cover how new franchisees can inject fresh energy and raise average unit volume (AUV) after acquiring underperforming territories. The episode is filled with actionable advice for franchise owners and franchisors, like the importance of proper exit planning, using valuation data to set realistic expectations, and offering various resale strategies to franchisees. Dave and Chris emphasize that, with nearly half a million franchises needing to transition in the next 5-10 years, now is the time for brands to get ahead of the curve.Finally, a big thank you to our sponsor, ClientTether, for making this episode possible. If you're looking for ways to enhance your franchise's sales and operational efficiency, ClientTether's lead management and CRM solutions are here to help you scale successfully! Tune in to gain key insights on how to prepare your brand for the future and take actionable steps toward growth.