Can two people share a franchise?

Franchises can be granted to sole traders, partnerships or limited companies. In all cases the identity of the partners and shareholders has to be set out when the agreement is entered into and, generally, cannot be changed without the prior written consent of the franchisor.  If two persons are to be involved in the franchise, the precise basis of their involvement must be given to the franchisor because, for instance, the franchisor may well want both persons to be actively involved in the business or would be happy for only one to be involved. Generally, the franchise agreement will specify the required involvement and will set out the ownership interest of each partner or shareholder.  Outside the structures referred to above, it is not possible to’share’ a franchise that will be given to a franchisee. That franchisee will almost always be prevented from passing on parts of the franchise to someone else, because it is important that only persons who have been approved by the franchisor and who have entered into franchise agreements with the franchisor are involved with the franchise.