Selling or Terminating a Franchise
The process of selling or terminating a franchise is more complicated than many expect. You likely have personal guarantees to the franchisor, landlord, and other vendors. You need to negotiate with and get approval from each of these parties in addition to finalizing a deal with the purchaser.
If you are selling your franchise, you need to make sure that the franchisor will approve the purchaser and be confident in the purchaser's ability to obtain financing or make payments. You need the right to resume ownership and control of the franchise if the purchaser defaults on the franchise agreement or payments. You have likely grown this franchise into a profitable business and may need help making sure you put the right value on your franchise. We can assist you with all of these steps and draft the documents needed for you to properly sell your franchise and achieve your goals.
If you are terminating your franchise, you need to first examine what claims you may have against the franchisor or what defaults the franchisor may have committed. We will advise you through the process and work with your lender to determine if you are entitled to any foregiveness of debt. The terms of your Franchise Agreement will dictate when and how you should terminate your agreement, but your lease and other vendor agreements must also be considered. We help you develop a plan and implement a plan for termination.