When you make the decision to purchase a franchise, it is an exciting time filled with equal parts optimism and anxiety. You may be focused on the long-term prosperity of your new business, but it is never too early to be thinking about the future. That is why, before signing a franchise agreement, you should be aware of your rights on selling the business down the road.
Most franchise agreements permit the sale of a business as long as a number of fairly standard conditions are met. These include:
• Being in compliance with the franchise agreement;
• The buyer is not a competitor of the franchisor
• The buyer possesses the requisite financial resources and business acumen to operate the franchise
• You have paid all amounts owing to the franchisor and suppliers