Can a franchisee sell their business at any time?
A franchisee’s ability to sell their business will be governed by the terms of their franchise agreement and it is unlikely they will have an unrestricted right to sell their franchise business.Usually a franchisor will want to be able to exercise complete control over its franchise network. This means that a franchise agreement is likely to contain numerous conditions that must be met before any sale of the franchise business can go ahead.The conditions may include providing the franchisor with details of the proposed purchaser, the proposed purchaser satisfying the franchisor of its business experience and financial standing, payment of the franchisor’s costs of approving the proposed purchaser and entering into a new franchise agreement with them, and payment of an ‘introduction’ fee in the event that the franchisor introduced the purchaser to the franchisee.Therefore, while the franchisee may have the potential to sell its franchise business at any time, it will usually only be able to do so when specific conditions imposed by its franchisor are met.
You might also be interested in
Shelley Nadler writes: A franchisee will be responsible for obtaining funding for and setting up their business... read more
Louise Harris writes: Most franchisors will allow a sale to take place at any point in the... read more
John Pratt writes: The answer is yes and no! The whole point of franchising is that the... read more
I’ll start with the caveat that the franchisor has been properly set up with the help... read more
Exciting Franchise Opportunities
Start your own Schmidt Kitchens franchise
Request free information
Schmidt Kitchens
Kitchen retail and showroom opportunities with one of Europe's largest kitchen...
£80,000 Minimum Investment
Start your own Agency Express franchise
Request free information
Agency Express
Agency Express provides the UK’s residential and commercial estate agents with...
£80,000 Minimum Investment
Start your own Junior Einsteins Science Club franchise
Request free information
Junior Einsteins Science Club
Junior Einsteins Science Club is a science-based after school activity club...
£80,000 Minimum Investment
Start your own Revive! franchise
Request free information
Revive!
Provides a mobile service repairing scuffed bumpers, chipped and scratched paintwork...
£80,000 Minimum Investment
Start your own Puddle Ducks franchise
Request free information
Puddle Ducks
Puddle Ducks classes teach babies and children to swim, be safe...
£80,000 Minimum Investment
_59_59_s.png){kind=logo}
_high_res_(1)_59_33_80_s.jpg){kind=logo}
_59_26_80_s.jpg){kind=logo}
_(1)_56_59_s.png){kind=logo}
