The franchise business will contact you by means of email and/ or telephone only to the email address and phone number you have provided.
By submitting the enquiry form you are consenting to send your personal information to the selected franchise business.
You also agree to receive further newsletter email marketing from What Franchise.
Close
Can a franchisee sell their business at any time?
While every franchise agreement is different, in theory a franchisee can sell its business at any time. That said, if a franchisee tries to sell it near to the end of the term of the franchise agreement, the value of the business can diminish proportionately, particularly where it only has a year or two left to run. It’s important to check the sale of the business clause in the agreement because it may or may not allow for a full new term to be granted to a purchaser of the franchise. Some sale of business clauses only allow a purchaser to acquire the balance of the term of the existing agreement. If the sale of business clause provides that the purchaser enters in the franchisor’s then current form of franchise agreement and this has a right of renewal, the purchaser will obtain the balance of the existing term plus the right of renewal. This may be long enough to satisfy the purchaser, but if it isn’t the franchisee/purchaser would have to negotiate with the franchisor to see if it is willing to grant a new franchise agreement with a longer term. If a franchisee wishes to sell their business, the franchise agreement will usually provide that they can sell it to a third party, subject to that purchaser meeting the franchisor’s standards. The new franchisee will have to be acceptable to the franchisor as if they had applied directly to the franchisor. It is usual for the franchisor to demand the same qualifications and standards for acceptance of a purchaser of the franchisee’s business as being applied to direct applicants. The franchise agreement will usually lay down an approval process that must be followed by the potential vendor. This usually includes providing the franchisor with the right to purchase the business from the franchisee on the same terms as any arm’s length third party purchaser.
You might also be interested in
Answered by Vincent Anthony
Vincent Anthony writes: The property market has wide appeal because it is relevant to everyone: we all... read more
Answered by Louise Harris
Louise Harris writes: Richness or wealth is relative. We always want more, I guess. So, what is... read more
Answered by Shelley Nadler
Shelley Nadler writes: A concern that businesses may have when deciding to franchise their business, is the... read more
Answered by Alan Wilkinson
Alan Wilkinson writes: There are two elements to consider here. First is the franchise fee itself, and... read more
Exciting Franchise Opportunities
Start your own Ovenu franchise
Yes
Find Out MoreN/A
Request Free Information
Send a free enquiry to Ovenu for further information!
Start your own Chop & Wok franchise
Yes
Find Out MoreProfit between 27 to 33% of turnover
Request Free Information
Send a free enquiry to Chop & Wok for further information!
Start your own Aspray Limited franchise
Yes
Find Out MoreN/A
Request Free Information
Send a free enquiry to Aspray Limited for further information!
Start your own Anytime Fitness franchise
Yes
Find Out MoreOperational breakeven in the first month...
Request Free Information
Send a free enquiry to Anytime Fitness for further information!
Start your own Premier Education franchise
Yes
Find Out MoreN/A
Request Free Information
Send a free enquiry to Premier Education for further information!
Companies to Consider
Get expert franchising news delivered straight to your inbox
Franchise news, advice and new opportunities delivered weekly.
Must Read Articles
-
Why does Mail Boxes Ect. work as a franchise business?
Added 12 hours ago | 2 min read
-
Women in business: The advice any new franchisee should know
Added 2 days ago | 2 min read
-
Sales Geek: Behind the B2B franchise trying to start a sales revolution
Added one week ago | 2 min read
Franchises by Minimum Investment
Find your next business opportunity
Search 100s of UK franchises and become your own boss today.
-
Under 10k
Starting a franchise doesn't have to be costly
Click here -
Under 20k
A mid-range investment for the more experienced
Click here -
Over 50k
If budget is not an issue, then don't miss these.
Click here -
Local Franchises
Find the perfect franchise in a location to suit you
Click here
What Franchise Newsletter
Keep up to date with all the industry news