Lately, more and more franchise companies are converting a significant number of their company-owned units by selling them to franchisees.
This trend commonly referred to as refranchising or retro-franchising, can be driven by any number of motivations on the part of the company, and it may represent a wonderful opportunity for a careful buyer if the circumstances are right.
In order to understand whether or not purchasing a company-owned unit would be a good opportunity for you, you need to know why the company acquired the unit in the first place and what has changed so that they now want to sell it.
There are a number of factors that might motivate a franchiser to acquire company-owned units.
Company-owned stores… read on.