Buying a franchise resale
A franchise resale gives a buyer an existing outlet and brand system, but the franchisor must approve the transfer.
Franchisor approval
The franchisor usually controls whether you may become the incoming franchisee. Ask about training, financial requirements, transfer fees and approval timing before you make an offer.
Agreement terms
Review the remaining franchise term, renewal rights, royalty, marketing levy, territory and any refurbishment obligations. A short remaining term can reduce value.
Store performance
Compare reported sales to point of sale data, VAT returns and bank deposits. Ask how much profit depends on the current owner working in the outlet.
Lease and staff
The lease must transfer or be renewed on acceptable terms. Staff usually transfer with the business if sold as a going concern, so review employment records.
Price discipline
A recognised brand does not make every store valuable. Price the outlet on sustainable profit after royalties, rent and manager costs.
Next step
Register for franchise resale alerts.
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This guide is general information, not legal, tax, accounting, finance or investment advice.