--- title: "franx resales dont count toward goals duh" url: https://burnaze.com/article/51646ac3-20b3-4dbc-b8c8-8af388985101 source: "1851 Franchise" original_url: https://1851franchise.com/franx-resales-dont-count-toward-goals-duh-2715680 category: "Franchise Industry" industry: "Franchise Industry" published: 2021-05-07T17:12:00.000Z modified: 2026-11-01T02:25:28.477Z image: https://newimage.1851franchise.com/cdn-cgi/image/quality=85,format=webp,width=1280,height=720/story/featureImage/59e27c83c9fbc4e900f38dec581d769d7672.jpg --- # franx resales dont count toward goals duh **TL;DR:** Franchise leaders often undervalue resales, but they can be a huge celebration of a brand's value, with 80-100% sales growth reported by Shuckin' Shack. Resales can provide instant cash flow for new owners and prevent units from closing. *originally published in 1851 Franchise on 2021-05-07. [Read the original](https://1851franchise.com/franx-resales-dont-count-toward-goals-duh-2715680).* ## Key facts - Shuckin' Shack saw 80-100% YOY sales increase - Power Trucks USA has gross sales exceeding $2.0M - Resales can provide instant cash flow for new owners ## Story 100 years ago on May 21, 1921, Wonder bread was introduced to the world by its founder Elmer Cline. According to the “Our Story” section of the Wonder Brand website, the Wonder Bread name and logo came from Elmer’s fascination with hot air balloons. The "wonder" of seeing hundreds of hot air balloons gliding across the sky in 1921 inspired Cline to give the brand its moniker. How could such a simple story turn into such an iconic brand? By being honest, genuine, and by building a connection at the human level. How does your brand connect? What does the “Our Story” section of your website look like? Do you have one? Back to that human connection... Dave wasn’t fascinated with hot air balloons - he was a criminal. But he’s also honest and turned a genuine human connection into a growing brand. Read his story. ## Franchise brand growth Pre-pandemic, post-pandemic - the after-market automobile accessory industry is hot. With new car prices going up, used car shortages, and enthusiasts that are focused on accessorizing their Jeeps and trucks. Power Trucks USA is an emerging franchise brand that is sitting in the sweet spot of a growing market. They specialize in aftermarket jeep and truck accessory sales and installations. Their Item 19 includes a financial performance representation with detailed Company Owned Outlet data with gross sales exceeding $2.0M and some great margins. **The Great Franchisee: Michael Mitchell, Shuckin’ Shack, Cumming, GA** The restaurant-industry veteran saw a 80–100% YOY sales increase at his franchise location last year, despite a two-month closure during the pandemic. Michael Mitchell has been in the restaurant industry for more than 40 years, going all the way back to his college days. In 2019, Mitchell took the leap into franchise ownership with Shuckin’ Shack, a 16-unit North Carolina-based oyster bar brand known for its responsibly sourced seafood and “seriously fun” vibe. Last year, Mitchell’s Shuckin’ Shack was forced to close for two months due to the COVID-19 pandemic. Still, the industry vet knew how to make the most of the opportunities he had, finding an 80–100% year-over-year sales increase in the ten months his store remained opened. Franchising is a tried-and-true strategy for successfully growing a business. A business owner can start a franchise by filing a Franchise Disclosure Document, which allows the company to sell the concept to qualified entrepreneurs who then replicate the established business model and follow the guidelines in exchange for the payment of fees and royalties to the franchisor. Now, as the world emerges from the COVID-19 crisis, there may be a large number of qualified candidates looking for new franchising opportunities. 1851 Franchise spoke with franchise industry experts to learn more about how a company can franchise its business and take advantage of this demand. ## Resale value How can you count a resale toward the deal goal when it is just handing off an existing location to a new franchise owner? That seems to be the mindset of a lot of leaders in the franchise space, almost as if a resale is less valuable than a new unit. But, is that the right mindset? A few things: 1. A resale should be a huge celebration. You are successfully showcasing the value of THE BRAND, in that there is some protection of asset at exit. No matter what, there is some money exchanged to an exiting and existing franchise owner. That’s a big deal. 2. Royalty is royalty is royalty is royalty. 3. Many times, next generation business owners make units better than before. 4. New blood taking over an existing unit gives them (in many cases) instant cash flow. With instant cash flow, they may buy more units. 5. Oh yeah, it prevented a unit from straight-up closing. 6. In many sales scenarios, the resale cannibalizes the new deals. Thus, it is equally valuable purely on that standing. 7. Treat a resale or transfer almost like a new opening. Create a celebration. Let the community celebrate you placing another business owner into business ownership. 8. Marketing fund additions, too. What else? Why else should they matter? Join in on the conversation on our private Facebook group. Also, pay better commissions on resales, they are still winning. ## Entities - 1851 Franchise (publication) - franchise growth (topic) - Franchise Industry (sector) - Facebook (company) - brand development (topic) - Shuckin' Shack (company) - resale value (topic) --- Originally reported by 1851 Franchise (https://1851franchise.com/franx-resales-dont-count-toward-goals-duh-2715680). Summarized by Burnaze (https://burnaze.com/article/51646ac3-20b3-4dbc-b8c8-8af388985101).