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Can I sell a franchise before the end of the agreement?
If you want to sell your franchise business, you must sell it before the expiry of the term ofthe franchise agreement. This is because on the expiry of the franchise agreement all your rights to operate the business will end and you will only be left with the assets you own. If you sell your franchise business during the term you will be able to sell it as a going concern with the rights to operate the franchise. You will have to obtain the franchisor’s consent to such a sale and satisfy certain conditions set out in the franchise agreement before you can sell to a purchaser. The franchisor will want to ensure that the purchaser is the type of candidate that it would recruit itself as a franchisee and that the purchaser has the financial resources to operate the business. You will not be allowed to sell your business if you are in breach of your obligations under the franchise agreement. You will also have to pay the franchisor certain fees on the sale of the business to cover its costs of approving the purchaser and dealing with the transfer.
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