Franchise resale: buying or selling an existing franchise
A franchise resale is a business sale with a third party at the table. The franchisor approves the buyer, sets the transfer conditions and controls the agreement the buyer will inherit. Lorne built and ran a 51-location franchise network, so he knows what franchisors look for and where resales stall.
What is different about a franchise resale
- Franchisor approval. The buyer must meet the franchisor's criteria. A well-prepared buyer file avoids delays and refusals.
- Transfer conditions. Transfer fees, training, and any renovations or upgrades the franchisor requires before approving the sale.
- The agreement. Remaining term, renewal conditions, territory and the obligations the buyer takes on.
- Royalties and performance. Sales history, royalty and marketing fund costs, and how the location compares with the rest of the network.
- Legal review. The franchise agreement and transfer documents are reviewed by a franchise lawyer.
For sellers and for buyers
Selling your franchise
A valuation that accounts for the remaining term and transfer costs, a buyer file prepared for franchisor approval, and a process that stays confidential within the network.
Buying a franchise resale
A review of the location's real performance against the network, the agreement you would inherit and the costs the franchisor may impose at transfer, before you commit.
The franchisor's side of the table
As President of Ben & Florentine, Lorne approved and onboarded every franchisee in the network himself. He knows how a franchisor reads a buyer's file, what raises concerns and what gets a transfer approved.
Questions owners ask
Can the franchisor refuse a buyer?
Yes. Most franchise agreements give the franchisor the right to approve or refuse a buyer, often against set criteria. Preparing the buyer's file in advance is the best way to avoid surprises.
Is a resale cheaper than a new franchise?
Not always. A resale comes with sales history and staff, which reduces risk, but the price reflects that, and transfer fees or required renovations add to it. The comparison should be made on the numbers.
Talk it through before you commit
The first consultation is free and carries no obligation. Most clients start with a phone call: describe your business and what you are considering, whether expanding, selling or buying, and Lorne will tell you plainly what it would take.