SELLING A FRANCHISE
You have operated your franchised business for several years. It is time for you to try to sell it so you can move on with the next chapter of your life. Selling a franchise is not that easy. In most cases, you cannot sell the franchise without the franchisor’s permission and approval of the sale. In many cases, the franchisor has control over the terms of the sale and can refuse to approve the sale for a variety of reasons.
In addition to understanding your rights to sell under the franchise agreement, you also need an experienced attorney to draft the purchase and sale agreement so it accurately addresses the nuances in your franchise agreement as well as accurately documenting the terms of your agreement with the buyer. Bundy & Fichter PLLC offers their clients experience in both franchise and small-business law and can guide them through the sale of their franchise.
What You Need To Know Before Selling Your Franchise
If you are considering selling your franchise, remember:
Don’t sign a listing agreement or purchase and sale agreement before talking to your franchise lawyer.
Understand what you can and what you must tell a buyer.
Understand what you have to sell.
Understand the value of what you have to sell.
Understand what your franchise agreement requires you to do.
Understand how to protect yourself with a good purchase and sale agreement.
Understand and manage the risks if you are providing financing.
Check out the buyer.
Call your franchise lawyer before you have more than even a superficial discussion with a prospective buyer.
Most importantly, retain an experienced franchise attorney. Howard Bundy has more than 40 years of experience representing franchisees and franchisors, experience that only a handful of franchise attorneys can offer.