{"id":2937,"date":"2022-05-12T05:57:03","date_gmt":"2022-05-12T04:57:03","guid":{"rendered":"https:\/\/uk.legalvision.com.au\/?p=2937"},"modified":"2024-05-22T07:14:25","modified_gmt":"2024-05-22T06:14:25","slug":"selling-franchise-when-do-i-notify-franchisor","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/franchising\/selling-franchise-when-do-i-notify-franchisor\/","title":{"rendered":"I’m Selling a Franchise in the UK. When Do I Notify the Franchisor?"},"content":{"rendered":"\n

Joining a franchise and, in turn, becoming a franchisee<\/a> can be a particularly beneficial business opportunity. However, in some cases, you may find that selling a franchise is in your best interests<\/a>. To do so, you will typically sell your rights as a franchisee to a prospective buyer. Although, you should note that this may come with certain obligations, such as notifying the franchisor. This article will explain your obligations as a franchisee when selling a franchise. Furthermore, it will offer you some guidance on letting your franchisor know that you are selling the franchise.<\/p>\n\n\n\n

Checking Your Franchise Agreement<\/h2>\n\n\n\n

The franchise agreement is key to defining your relationship with your franchisor. You enter into a franchise agreement when joining, or setting up a franchise business<\/a>. Ordinarily, you will sign the franchise agreement alongside a franchise disclosure document<\/a>. Typically, a franchise agreement will include details of the franchise business you are entering into a relationship with, alongside terms and conditions that outline your obligations. <\/p>\n\n\n\n

For example, the terms of a franchise agreement would state the period for which your franchise business relationship will exist. Further, it may also include provisions for what happens when you decide to sell your franchise business. <\/p>\n\n\n\n

Since there is no specific ‘franchise law’ within England and Wales, the terms of your contract will define your franchise relationship. As a result, if the franchise agreement says that you must provide your franchisor with early notice if you plan to sell your share, you must do so. Failure to do so would mean that you are in breach of contract. Consequently, your franchisor can take legal action against you. Therefore, it is critical to have a clear understanding of the terms and conditions of your franchise agreement.<\/p>\n\n\n\n

Terms of Your Franchise Agreement<\/h2>\n\n\n\n

In a franchise agreement, there are some standard terms relating to the selling of a franchise as part of a franchise agreement, which you may encounter. For example, your franchisor may put in a condition which:<\/p>\n\n\n\n