How to Sell a Franchised Business
From the moment a prospective franchisee considers purchasing a franchise, he or she should consider exit strategies. One of the most common exit strategies for franchisees is to sell the franchised business, whether the sale is to another franchisee, a third party outside buyer, or to the franchisor.
The sale of a franchise is a complex business deal and we can help you navigate the process from beginning to end. Garner, Ginsburg & Johnsen will work with you to:
- Ensure you meet the franchisor’s conditions for approving a sale;
- Make sure you prepare and sign a letter of intent, if applicable;
- Protect your financial interests in the purchase agreement;
- Limit your risk of liability following the sale;
- Determine what laws, rules, or regulations apply, if any; and
- Obtain all necessary documents at closing.
There are also situations in which a franchisor will not approve a prospective purchaser, and the selling franchisee may have legal recourse against the franchisor in this event. We can help with these adversarial issues, as well.
Signing a purchase agreement without having us review it can result in substantial short-term and long-term risks. Having years of experience in the franchise industry, as well as representing franchisees and other businesses in the purchase and sale thereof, Garner, Ginsburg & Johnsen is in a strong position to reduce franchisees’ risks and maximize value from the sale of a business.
Contact us now for a free consultation or to learn more about how to sell a franchise business!