Selling your Franchise

Are you Permitted to Sell?
It is important to check whether you have approval to sell your franchise. This would depend on the terms of your Franchise Agreement. Most franchises would allow you to sell your franchise but this can only be done with the approval of the franchisor. The approval of the franchisor can not be withheld unreasonably. During the term of the Franchise Agreement you would find that the agreement usually allows you the option of selling but it is on the following terms.

• The franchisor would probably have first option to buy the franchise from you.
• The new franchisee that you sell to would need to be approved by the franchisor.
• The new franchisee would have to undertake training to a standard that is acceptable to the franchisor.
• Your franchise agreement may have a condition of payment of a transfer fee.

In general, the franchise agreement would continue without any change except it would be under the new franchisees name. At the end of the franchise agreement term a new agreement with new terms and conditions may be put together by the ...