Selling a Franchised Business
Selling a franchised business presents some unique issues and obstacles not present in a typical business sale.
Rather than simply closing a deal between a buyer and seller, the sale of a franchised business is a three-party transaction involving a buyer, seller, and a franchisor. It is common for a Franchise Agreement to impose numerous requirements and restrictions on a franchisee’s ability to sell its franchised business.
If addressed proactively, these requirements can actually facilitate a transfer. If the contractual requirements are ignored, then problems will arise that can quickly derail a transaction.