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Refranchising or retrofranchising

Refranchising or Retrofranchising is taking a corporate owned location, which may have been run by a franchisee in the past, and selling the operating business to a new franchisee. In refranchising, the franchisor runs the operations and knows it well. The franchisor has an expectation that the corporate unit will be successful under a franchisee.

This is in contrast to the practice of churning.

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Franchise Operations