The Small Business Specialists
Phone: 13 12 49
Selling a franchise isn't quite the same as selling an ordinary business. Your franchisor will have an established procedure for the sale of any business within the franchise.
This procedure is usually outlined in your franchise agreement under “assignment” and will be detailed in your operations manual. Although it will restrict what you can do, the procedure will also make the sale process easier by giving you a clear understanding of what you need to do to make a successful sale.
It's also a good idea to discuss the sale of your business with the franchisor and other franchisees as they could have useful advice or may even offer to help you sell your business. They might want to buy it themselves or they could know someone who wants to get into the franchise group.
Under the franchise code the franchisor is required to provide a disclosure document to the person who buys your business. As a gesture of goodwill, and in order to be transparent in your business dealings, it's a good idea to provide the buyer with a copy.
The ACCC regulates the Franchising Code of Conduct which is a mandatory industry code that applies to the parties to a franchise agreement.
The obligations for the sale within the franchise agreement will vary from one franchise to another. Talk to your franchisor to find out about any specific requirements which could include the following: