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.
What’s a transfer fee?
A transfer fee is the fee a franchisor charges to the franchisee if the franchisee sells the business or shares in the company operating the franchise. It will be more difficult for the franchisee to sell the franchised business than it would be to sell a non-franchised business, as the buyer will have to be approved by the franchisor.The level of the fee and the restrictions on the franchisee’s rights to sell the business or shares will be set out in the franchise agreement. The transfer fee should reflect the fact that the franchisor will have to provide training and other services to the buyer.The franchisor will also usually require the franchisee to pay the costs it incurs in evaluating the proposed buyer and assessing whether or not to exercise any first option it may have to purchase the franchisee’s business or shares. If the franchisor has this right, the details and mechanics of it will be contained in the franchise agreement. If the franchisor has introduced the buyer to the franchisee, it may also charge a finder’s fee to reflect the fact that it will not receive an initial fee.
You might also be interested in
I’ve received the franchise disclosure document. What are the questions I should ask the franchisor?
Answered by John Pratt
John Pratt writes: In the UK, there is no legal requirement for a franchisor to provide any... read more
I’m a franchisee with one brand, but I’m looking to invest in another. What should I tell my current franchisor – Am I duty-bound to inform them at all?
Answered by Louise Harris
Louise harris writes: It’s good to see a franchisee looking to expand – especially when they see... read more
I’m quite close to investing in a brand. How can I be certain that the expected revenue projections they’ve supplied me with are genuine?
Answered by Shelley Nadler
Shelley Nadler writes: There are many different ways in which franchisors present revenue projections. Franchisors may illustrate... read more
Answered by Alan Wilkinson
Alan Wilkinson writes: Franchise resales may come about for a number of reasons. Often a franchisee will... read more
Exciting Franchise Opportunities
Companies to Consider
Yes via third parties, both bank finance and asset finance
The Travel Franchise –...
£500,000 to £1m
The Christmas Decorators
Black Rooster Peri Peri
ROI within 18 months with an average net profit of 25%
35% to 40% profit, depending on the business model
Yes, via high street banks
Get expert franchising news delivered straight to your inbox
Franchise news, advice and new opportunities delivered weekly.
Must Read Articles
Added 2 years ago | 2 min read
Added 2 days ago | 2 min read
Added about 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