Experts advise prospective franchisees to carefully review their franchise disclosure documents (FDD) before committing to the purchase of a franchise. Item 20 in the FDD discusses the sale of the franchise and the termination or transfer of the franchisor-franchisee contract. Sometimes these contracts include stipulations for franchisor consent the right of first refusal in a buy-back, and these rules can present hurdles if not planned for â€“ or known about â€“ in advance. Even so, experts say that there can be advantages to selling a franchise over an independent business, but vagaries in the market make it hard to plan for the benefit. For more on this continue reading the following article from Blue MauMau.
Individuals considering a franchise opportunity should include franchise resale performance as part of the due diligence process. Having an exit strategy is a critical component of any new business start-up.When individuals purchase a franchise some consider the possibility of selling it in the future or allowing their children to take ownership. For this reason, the resale potential of a franchise should be another item on the franchise evaluation checklist.