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.
Do I have to pay a ‘transfer fee’ to the franchisor if I sell my franchise?
It is an important part of any franchise business that the franchise owner has the right to sell the business in much the same way that any business owner would have the right to sell. The difference in franchising is that the franchisor must approve the purchaser to make sure that the incoming franchisee is the sort of person the franchisor would like to have as a franchisee. Not only must the franchisor approve the franchisee, but the franchisor will incur costs in training the incoming franchisee, along with other administrative costs. Also, franchisors often have a databank of prospective purchasers and act as business transfer agents for their franchisees’ businesses. For all of these elements, you would expect the franchisor to charge a fee. In relation to ‘checking out’ an incoming franchisee, a fee of between £500-£1,000 is usually charged. In relation to training and other administrative costs, most franchisors charge a percentage of whatever their then current initial fee might be - usually 50-60 per cent. For acting as a business transfer agent, franchisors normally charge 5-10 per cent of the sale price of the business. Ultimately, what a franchisor is entitled to charge will be set out in the franchise agreement.
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
Companies to Consider
This would be discussed at interview stage
Yes, via high street banks
£400,000 - £500,000 revenue with £40,000 - £65,000 profit
Laser Clinics United Kingdom
Eggless Cake Shop Franchise
£180,000, net profits of 22%-26% once established
Broadway Wine Company
£648,000 per annum with a gross profit of £108,216 and EBITDA of £82,956 by Year Three
Get expert franchising news delivered straight to your inbox
Franchise news, advice and new opportunities delivered weekly.
Must Read Articles
Added 3 years ago | 2 min read
Added one day ago | 2 min read
Added 4 days ago | 2 min read
Find your next business opportunity
Search 100s of UK franchises and become your own boss today.
What Franchise Newsletter
Keep up to date with all the industry news