Frequently Asked Questions

General questions about franchising

In this section, experts answer general questions most commonly asked which go beyond the specific subject areas listed above.

Are franchisees entitled to sell their business?

Since franchisees own their businesses, they are naturally entitled to sell them. However, to maintain the standards of the network, the franchisor will wish to participate in selecting a suitable purchaser, as was the case when the current franchisee purchased the business. The franchise agreement will outline the procedure to be followed by the franchisee.

Usually, contracts include a notice period, to enable the franchisor to exercise pre-emption rights, a selection process and final decision, candidates may be turned down if the franchisor has justifiable reasons for not accepting the potential franchisee.

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