As a franchisor, when your franchisee decides to sell their franchise, you will have the opportunity to oversee the process, to approve the buyer and to offer some support and input to help the sale proceed smoothly.
Our franchise team has extensive experience advising franchisors on:
• Drafting and reviewing sale and purchase agreements
• Preparing confidentiality agreements
• Managing the transfer of commercial premises
• Ensuring compliance with franchise agreement terms
We’ll work closely with you to ensure the resale process is clearly defined, legally sound, and aligned with your business goals.
If we’re involved in setting up your franchise agreement, we’ll ensure it includes a robust resale clause—outlining how a franchise can be sold and what approvals are required. This gives you control over the process and helps avoid disputes.
Supporting your franchisee through the resale can also strengthen your brand and reassure prospective buyers of your ongoing involvement and commitment.
The resale procedure should be clearly set out in your franchise agreement. Typically, it will:
• Require your approval of the buyer
• Allow you to review references and meet the prospective franchisee
• Give you the opportunity to assess whether the buyer is a good fit for your brand
This involvement helps ensure continuity, protects your reputation, and supports the long-term success of your franchise network.
We’ll help you navigate important legal and commercial issues, including:
• Whether the sale involves assets or shares
• Transfer of commercial leases and landlord consent
• Drafting or updating the franchise agreement for the new owner
• Addressing warranties, indemnities, and other contractual terms
Landlord approval for lease transfers can take time, so we recommend starting this process early.
While resales can seem disruptive, they often bring benefits—such as renewed energy from a new franchisee and improved business performance in preparation for the sale.
• Extensive experience in franchise resales and transitions
• Commercially focused, practical legal advice
• Integrated support across property, commercial, and employment law
• Recognised in The Legal 500 and awarded the Law Society Mark of Excellence
Our specialist commercial lawyers offer a one-stop-shop for legal advice for all types of business – from start-ups to established companies.
All of our lawyers are specialists in their area of law. Book in for an initial discussion where we will discuss all of your options with you.
