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What’s a franchise resale?
When you take a franchise you are establishing your own business, albeit one that trades under the franchisor’s brand and is subject to the franchisor’s know-how. This should give you a substantial advantage in terms of making your business profitable. During the period in which you operate your franchise you will, hopefully, make profits.There may come a time when you want to retire or do something else, and as with any business you might own you would look to sell it. On a sale you will receive a payment from the purchaser of your business provided, of course, your business is profitable.Unlike the situation that prevails in non-franchised businesses, you cannot sell your business to whoever offers you the most money. Any purchaser must meet the franchisor’s requirements in relation to a franchisee - it would be unfair for a franchisor to have to take on a franchisee they would not have recruited in the first place - and you will have to comply with the transfer provisions in the franchise agreement, which sets out how a franchise resale is to take place.
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