Many franchisees have the end-goal of acquiring a franchised business, building it up to be a valuable asset and then selling it in the future (whether as an investment or retirement plan).
Whether you are a franchisee wishing to sell your existing business, or a buyer wishing to purchase an established business from an existing franchisee, the sale of a franchised business involves certain niche steps outside the scope of a standard business sale.
We can assist buyers and sellers of franchised businesses as follows:
- Drafting or reviewing the Business Sale Contract, with a particular focus on ensuring that the Special Conditions are tailored to the franchised business. For example, ensuring the sale is conditional upon:
- the franchisor consenting to the sale on terms acceptable to both the buyer and seller;
- either the transfer of the seller’s existing Franchise Agreement to the buyer, or the grant of a fresh new Franchise Agreement to the buyer;
- the buyer undertaking the franchisor’s training program to the franchisor’s satisfaction;
- the buyer and seller agreeing on who will pay the franchisor’s legal costs and any transfer/assignment fee associated with the transaction.
- For buyers, undertaking the services for a prospective franchisee set our within our page for Franchisees Acquiring or Renewing a New Franchise.
- For sellers, reviewing and advising on the franchisor’s Deed of Termination/Surrender.
- Otherwise carrying out the other ordinarily steps in our pages for Buying a Business or Selling a Business.
