The La Porchetta restaurant business is taking steps to ease the franchise resale process. CEO Sara Pantaleo explains.

La Porchetta has been franchising since 1990. This was prior to the introduction of the Franchise Code of Conduct in Australia.  In the early days, the recruitment processes were very simple and straight forward.  Re-sales did not occur in La Porchetta until the early 2000, as traditionally our franchisees stayed with us for many years. So when it came to re-sales, our approach was casual.  The outgoing franchisee would recommend the potential buyer, we met with them and providing they were financially viable with regard to purchasing the business, they were approved.

As you would imagine this created some problems.  So what have we learned over the last 16 years?

Firstly, we now have strong processes and checklists for resales and incoming franchisees, just as we do for recruiting and accrediting new franchisees for greenfield sites.

Secondly, our outgoing franchisees are supported to achieve the best possible price for their investment.  We help them work through a process that can take six to 12 months as many aspects of the business need to align for a successful transition. These include liquor licence and lease agreements.

Finally, we have meetings with both parties to ensure that everyone understands what needs to occur for a smooth settlement.

As franchisors we cannot advise our franchisees, but we can ensure total transparency with both parties so there is a positive exit for outgoing franchisees and a smooth entry for incoming ones.