Franchise Opportunities

The Resale Process: Buying from a Franchisee

Two businessmen shaking hands

A franchise resale refers to a prospective franchisee purchasing a franchise location from a current franchisee instead of directly from a franchisor. Franchisees choose to sell their franchise locations for a variety of reasons. Often, they’re ready to retire. Other times, they want a less hands-on business or are moving away and don’t want to oversee from a distance. Read on to learn all about the franchise resale process.

Finding the Opportunity

You’ve put in the work to find a franchise opportunity that seems like the perfect fit for the lifestyle you want. Whether it’s hands-on, semi-absentee, a legacy brand or an industry up-and-comer. It’s what you want. But is there even territory availability in your desired market?

As with any franchise opportunity, you can reach out to the franchisor for information about their franchising opportunities in your area. Ideally, they should know if one of their franchisees are looking to sell. If someone in your area, or an area you are considering as an investment option, has a desire to sell their franchise, the franchisor should be able to pass along their contact information.

Working with Franchisee

Once you get in contact with the franchisee who is ready to sell their franchise business, treat them like a validator. Ask them the questions a franchisor can’t answer, including specifics about individual store finances and investment.

After you’ve received all of the answers you need to make the decision to franchise with a particular brand, it’s time to talk terms. You’ll work with the current franchisee to decide on a price, a transition timeline and what to do with current inventory. These terms will be sent to the franchisor for approval.

Working with the Franchisor

Because you have the ideal net worth, financing and capital to start your franchise, you’ve been approved! Now you will work with the franchisor on the next steps of the franchising process. The franchisor will provide you with a Franchise Disclosure Document, or FDD, that will detail everything you’ve discussed with the franchisee you’re purchasing from, the franchisor and the expectations of you as a franchisee. Once you’ve had time to read through the FDD and talk it through with your franchise lawyer, you will receive and sign a franchise agreement. Once the agreement is signed, you’re officially a franchisee of your chosen brand.


Now it’s time for you to take part in franchisee training. Although you do have a previous franchisee as a resource, your franchisor will make sure you have all of the information their franchisees need to thrive. During training, you will learn about the history of your brand, what everyday operations look like, how marketing dollars are spent and more.

Franchise resales open up a whole new world of franchise opportunities. To discover franchise opportunities — both resales and traditional sales — explore America’s Best Franchises and find the investment opportunity that will give you the lifestyle you’re striving for.

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