Franchise Glossary
Resale (Franchise Resale)
What is Resale (Franchise Resale) in franchising?
The sale of an existing franchise unit from one franchisee to a new owner. A resale differs from buying a new unit. The business has a track record, including revenue history, existing customers, and existing staff, but the purchase price reflects that established value rather than the startup investment in Item 7. Resales require franchisor approval and buyer qualification. They can be an efficient way to acquire a running business, or an expensive way to inherit someone else's problems. Validate the seller's claims with customers, staff, and the brand independently.