The Franchise Exit Landscape: Why It Matters More Than Ever

By Ashton J. How, Partner at MyExitPartners

If you lead a franchise network, there’s a conversation happening right now that could shape your brand’s next chapter, and it’s not about recruitment or marketing. It’s about exits.

Franchisee exits are happening more often, with another wave on the horizon. Behind the scenes, thousands of operators across Australia and New Zealand are quietly preparing to sell, retire, or step away. The question is: are those exits setting your network up for strength or strain?

More Exits Than You Might Think

Let’s look at the numbers.

Australia: There are over 70,000 franchise units across the country. Each year, 9-11% of franchisees attempt to exit – that’s roughly 6,300 to 7,800 businesses changing hands annually. Up to 60% of these sales are DIY. That means sellers are navigating pricing, marketing, and buyer conversations on their own, often without the right tools, and rarely with the brand in mind.

New Zealand With 25,000+ franchise units, New Zealand sees 2,000 to 2,500 franchisee exits a year (based on an 8-10% turnover rate). Many of these are informal, listed on Trade Me or passed on through word of mouth, putting resale prices, buyer quality, and brand alignment at risk.

But here’s what caught my attention: 28-38% of franchisees across Australia and New Zealand are thinking about exiting at any given time. That’s 34,200-47,200 operators out of roughly 124,000-126,000 total units, with New Zealand at 20-30% (6,000-9,600 franchisees) and Australia at 30-40% (28,200-37,600 franchisees). These figures, drawn from the 2024 Franchising New Zealand Survey, 2023 FCA Survey, IBISWorld data, and global IFA benchmarks, reveal the scale of what’s happening beneath the surface.

What Happens When Exits Go Unmanaged?

Franchisees aren’t just selling a business. They’re handing over part of your brand. When that transition is rushed or under-prepared, the impact ripples far wider than the unit itself:

• Businesses are undervalued – often by 15-30%
• Sales drag out for 8-12+ months, delaying network growth.
• Sellers unintentionally misrepresent financials or the offer.
• Unqualified buyers take up time and erode confidence.
• Brand reputation suffers when a resale goes poorly.

Strategic Exits Are a Growth Lever

Here’s the flip side: when franchisors take a strategic approach to exits, everything changes.

Franchisees who sell with the right tools, comparable sales data, a compelling information pack (CIM), and clear buyer guidance achieve higher prices and greater salability. Your brand stays protected. And you position yourself as a network that supports franchisees from start to finish.

What’s even better? These exits become entry points. Every well-managed sale brings in a fresh, aligned, and motivated owner. That’s the compound effect: better outcomes today that strengthen your network tomorrow.

The Strategic Opportunity

Exits aren’t just an operational task – they’re a strategic advantage.

When handled well, they help you:

• Elevate brand value with professional, smooth handovers.
• Attract stronger buyers with qualified leads and faster responses.
• Improve resale comps, unit-level profitability, and franchisee satisfaction.
• Build a more resilient, attractive network that grows on reputation, not churn.

At MyExitPartners, we built SellSimple™ and LeadSync™ to help you do exactly this, white-labeled tools that give you control, your franchisees confidence, and your brand room to scale.

If you’d like to explore what that could look like in your network, let’s talk.

Ready to transform how entry and exits work in your franchise network? Connect with Ashton at MyExitPartners to discuss strategic exit solutions tailored to your brand.