Selling a franchise

 Selling a franchise is different to selling a ‘standard’ business.

Your franchisor will have an established process for selling a business within the franchise. This should be in your franchise agreement and operations manual. Although it will restrict what you can do, the process will also make the sale easier by providing clear steps to follow. It is a good idea to discuss the sale of your business with the franchisor and other franchisees as they could have useful advice or want to buy it themselves.

Franchise agreement obligations

The obligations for the sale will vary by franchise. Check with your franchisor for specific requirements, these could include:

the franchisor having first right to purchase the business

the franchisor interviewing the potential buyer

the potential buyer having to be approved by the franchisor

an assignment fee

the cost of training the new buyer

transfer of business registrations to the new owner or back to the franchisor.

https://www.smallbusiness.wa.gov.au/exiting-business/selling-franchise 



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