Franchisee Exits - Managing Franchisor Consent in M&A Transactions

You’ve built a thriving franchise operation over a decade, and now a qualified buyer stands ready to write a check. The deal terms are agreed, financing is secured, and closing seems weeks away, until your franchisor’s transfer review team requests additional documentation and the approval timeline stretches well beyond your expectations. Welcome to the unique complexity of franchisee exits, where a third party holds veto power over your transaction.

Executive Summary

Franchise business exits introduce a third party into every transaction: the franchisor whose consent you need to complete any ownership transfer. This franchisor approval requirement creates transaction dynamics that don’t exist in independent business sales, adding timelines, requirements, and potential deal-breakers that can surprise unprepared sellers and their advisors.

For franchisees planning exits, understanding the franchisor consent process isn’t optional. Transfer provisions buried in franchise agreements contain approval criteria, timing requirements, fee structures, and conditions that materially impact deal terms and timelines. Franchisors evaluate buyers against their own standards, which may differ significantly from what sellers consider “qualified.” Some franchisors treat transfers as routine administrative processes, while others view ownership transitions as opportunities to upgrade unit economics, renegotiate terms, or assert greater control over operations.

This article examines the franchise transfer landscape for traditional business format franchises in the $2M-$20M revenue range, primarily service and quick-service restaurant operations. We break down common franchisor requirements, approval processes, and provide frameworks for managing the three-party dynamics that define franchise M&A transactions. We also look at strategic alternatives to third-party sales, address what happens when approvals fail, and acknowledge that franchisor practices vary dramatically across systems. Whether you’re years from your exit or actively negotiating with buyers, understanding these franchise-specific dynamics will improve your transaction probability and help you plan realistically, though even excellent preparation cannot guarantee approval success.

Introduction

Franchise businesses occupy a unique position in the lower middle market. They combine the operational independence of owner-operated businesses with the structural constraints of corporate partnerships. This hybrid nature creates both value and complexity when ownership changes hands.

The franchise model’s standardization and brand recognition often generate premium valuations. Buyers appreciate proven systems, established supply chains, and built-in marketing support. Lenders favor franchise businesses for their lower failure rates and franchisor oversight. These advantages translate into broader buyer pools and potentially stronger offers than comparable independent businesses might attract.

But franchise exits carry constraints that independent business owners never face. Most modern business format franchise agreements in the United States contain transfer provisions that give franchisors meaningful ability to consent to or deny ownership changes. These provisions exist because franchisors have legitimate interests in who operates their branded locations, interests that don’t automatically align with your transaction goals.

Critical caveat: Franchisor approval processes vary dramatically across systems. The dynamics outlined in this article are typical but not universal. Some franchisors complete approvals in 60-90 days; others take six months or longer. Some charge minimal transfer fees; others impose significant costs. Your specific franchisor’s practices may differ materially from general patterns, and understanding those specific practices early is necessary to realistic planning.

Understanding where your franchisor falls on the approval spectrum, and how to navigate their specific requirements, determines whether your franchise exit proceeds smoothly or becomes mired in delays, renegotiations, or outright rejection. The strategies that work for independent business sales often fail in franchise contexts, while approaches specific to franchise transfers can unlock transactions that initially seem blocked. Even with excellent preparation, denial rates in our experience range from 5-20% depending on franchisor and system health. Realistic expectations about this uncertainty should inform your planning.

Understanding Franchise Transfer Provisions

Your franchise agreement’s transfer section may span only a few pages, but those pages contain provisions that control your exit options. Before engaging buyers or planning transaction timelines, thorough transfer provision analysis should inform your entire exit strategy.

Core Transfer Restrictions

Most business format franchise agreements restrict transfers in several fundamental ways. Direct assignment prohibitions prevent you from simply selling your franchise rights to any buyer you choose. These clauses typically require franchisor consent for direct ownership transfers, whether through asset sale, stock sale, or indirect transfers affecting controlling interests. But change-of-control definitions vary. Some capture only majority transfers, while others capture any change in controlling persons or entities.

Right of first refusal clauses appear in some franchisor agreements, giving franchisors options to match buyer offers and acquire units themselves. If your agreement includes ROFR language, understand that these provisions can complicate or extend transactions by introducing uncertainty that discourages buyers and adds weeks to timelines. Even when franchisors don’t exercise ROFR rights, the process of presenting offers and waiting for decisions extends closing schedules.

Transfer fee structures impose direct costs on ownership changes. In our experience reviewing franchise systems across service, retail, and quick-service restaurant sectors, fees commonly range from $10,000 to $35,000, with significant outliers in both directions depending on system size and unit economics. But transfer fees represent only a portion of total transaction costs. Review Item 6 of your franchisor’s franchise disclosure document for your specific system’s fee structure and any fee increases applicable to transfers.

Full cost accounting matters: Beyond the transfer fee itself, budget for legal counsel specializing in franchise transfers ($5,000-$15,000), accelerated due diligence costs ($10,000-$25,000), seller time managing the approval process (often 40-60 hours valued at $20,000-$30,000 in opportunity cost), and contingency reserves for potential re-marketing if approval fails (10-15% probability multiplied by $50,000+ re-marketing costs). On a $2M franchise sale, total transaction costs including all of these elements typically run $40,000-$90,000, not the $25,000 transfer fee alone.

Approval Criteria and Standards

Franchise agreements typically outline buyer qualification standards that franchisors apply during transfer reviews. While requirements vary significantly across systems, financial qualifications are nearly universal. In our experience with quick-service restaurant franchises, net worth minimums typically range from $500,000 to $1.5M, while service-based franchises often require $250,000-$500,000. Liquidity requirements (cash available separate from net worth) typically represent 20-50% of initial franchise costs. Experience requirements vary more widely: some systems require no prior business background, while others mandate three or more years in related industries.

Review your franchise agreement carefully for language permitting franchisors to apply current-standard qualification criteria. This provision, when present, allows franchisors to impose stricter buyer requirements than existed when you signed your original agreement. If your agreement contains this language, buyers today may face higher financial requirements, more extensive experience mandates, or operational involvement expectations that didn’t exist when you acquired your franchise.

Most franchise systems require new owner training completion before operational control transfers. In our experience, training duration varies considerably: service-based franchises often require one to three weeks, while capital-intensive quick-service restaurant systems may require four to eight weeks. For example, a home services franchise might require 10 days of training, while a major burger chain could mandate 6-8 weeks of intensive preparation. Plan for training completion in the weeks following closing, and understand whether your franchisor requires training before or after the transaction closes.

Agreement Renewal and Modification

Transfer approval processes often intersect with agreement terms and renewal provisions. In our experience working with franchisees across multiple systems, most franchisors require new owners to sign current-form agreements as a condition of transfer approval, though a subset allows continuation of existing terms. Current agreements typically contain updated terms, modified royalty structures, better franchisor rights, and fresh term periods.

Typical agreement modifications upon transfer include royalty increases (common for aging agreements, typical range 0.5-1.5 percentage points), technology fee additions ($200-$500 per month), and refreshed term periods (typically five to ten year extensions). Less commonly: territory modifications, audit right additions, or development commitment changes.

This dynamic creates negotiating complexity. Buyers evaluating your business see one set of terms governing current operations but face different terms going forward. Material changes affect business value and may require purchase price adjustments. Understanding whether your transfer will require agreement replacement, and obtaining current agreement forms during your planning process, prevents surprises that derail transactions.

Strategic Alternatives Before Pursuing Third-Party Sales

Before committing to a third-party buyer sale and its attendant franchisor approval requirements, consider whether alternative strategies might serve your goals more effectively.

Continue Operating with Professional Management

Not every franchisee needs to exit completely. If your motivation is reducing operational involvement rather than cashing out entirely, hiring a professional general manager may preserve optionality while generating ongoing income. This approach avoids franchisor approval complexity entirely and maintains your equity position for a future sale when market conditions or personal circumstances favor it.

Economic comparison: Professional management works best when owners can afford to wait 2-5 years for exit and quality managers are available for $80,000-$150,000 annually (depending on market and complexity). Compare ongoing income potential against immediate sale proceeds. For example, if your business generates $300,000 annually after manager compensation and your immediate sale would net $1.5M after all costs, you’re comparing ongoing cash flow against a lump sum. This comes with ongoing operation carrying continued business risk but also potential appreciation. The right choice depends on your liquidity needs, risk tolerance, and confidence in your ability to hire and retain quality management.

Direct Franchisor Acquisition

Some franchisors actively acquire units from selling franchisees, either for company-owned operation or for refranchising to preferred candidates. If your franchisor has historically acquired franchisee operations, looking at a direct sale may simplify the transaction considerably. While franchisor acquisitions may not maximize sale price, they eliminate buyer search costs, reduce approval uncertainty, and often close faster than third-party sales.

Franchisee-to-Franchisee Transfers

Transfers to existing franchisees within your system often face different approval dynamics than sales to outside buyers. Existing franchisees have established track records, completed training, and demonstrated operational capability. If your franchisor maintains a network of multi-unit operators seeking expansion, these buyers may offer faster approval paths and higher closing probability.

Asset Liquidation

In challenging situations where third-party approval seems unlikely or franchisor relationship has deteriorated, asset liquidation may represent the most practical path. Sell business assets (equipment, inventory, leasehold improvements) and let the franchise agreement terminate. While this typically yields lower proceeds than going-concern sales, it avoids protracted approval battles and allows you to move forward.

Evaluate these alternatives honestly before investing in third-party sales processes. The approval complexity described in this article assumes you’ve determined that third-party sale maximizes your outcome.

Building Franchisor Relationships Before Your Exit

The franchisor relationship you bring into your exit process influences approval outcomes and timelines. Franchisees who maintain strong franchisor relationships through their ownership often enjoy advantages when transfers require approval, though operational quality is the primary determinant of approval success. Strong franchisor relationships frequently correlate with operational excellence, and the relationship itself may be a signal rather than a sole cause of approval success.

The Relationship Foundation

Franchisor approval processes involve subjective judgments, not just checklist reviews. Transfer teams evaluate whether proposed transactions serve system interests, and their assessments include impressions of selling franchisees. Owners known as cooperative partners, strong operators, and positive system contributors may receive benefit-of-the-doubt treatment that difficult franchisees rarely enjoy.

This doesn’t mean years of conflict doom your exit prospects, but it does mean relationship assessment (and potential repair) should begin well before you market your business. Addressing outstanding compliance issues, engaging constructively with field representatives, and demonstrating partnership orientation builds credibility that makes approvals easier. Focus first on operational metrics: compliance, profitability, and unit-level performance. Relationships tend to improve naturally when operations are strong.

Strategic Pre-Exit Engagement

Whether to formally notify your franchisor of your exit intentions (and when) depends on your specific situation. If your franchisor relationship is positive and operations are strong, advance notification can build trust and allow collaborative problem-solving. But if compliance issues exist or your relationship is strained, early notification may trigger accelerated enforcement or create unwanted pressure.

Critical risk acknowledgment: Early notification carries risks that aren’t always obvious. Even franchisees with current compliance may face heightened scrutiny, accelerated compliance investment demands, or increased franchisor oversight once exit intentions are known. Some franchisors interpret exit planning as reduced commitment and respond accordingly. Assess your specific situation and relationship quality carefully before disclosure, and consult with franchise counsel about the implications.

If you determine that advance notification serves your interests, contact your franchisor relationship manager to understand their preferred timeline and approach. During pre-exit conversations, gather intelligence that informs your planning. Ask about recent transfer approvals to understand current buyer standards. Ask about typical approval timelines and documentation requirements. Find out whether your franchisor maintains approved buyer lists, operates formal resale programs, or actively helps with ownership transitions.

Addressing Operational Concerns Proactively

In our experience, franchisors enforce compliance standards more strictly during transfer approvals than during ongoing operations. Deferred maintenance, outdated equipment, modified procedures, or relaxed standards that your franchisor tolerated during your ownership may become approval conditions during transfers.

Common cure conditions include: equipment replacements mandated by system updates, signage or facility appearance upgrades, technology system implementations, and training or certification program completion. For quick-service restaurants, equipment compliance might include POS system upgrades ($15,000-$25,000), kitchen equipment modernization ($25,000-$50,000), and signage updates ($10,000-$20,000). Total: $50,000-$100,000 for complete updates. Service franchises typically face lower costs: technology platforms ($5,000-$15,000), office equipment ($3,000-$8,000), and marketing materials ($2,000-$5,000). Total: $10,000-$30,000. Major operational failures (health and safety violations, regulatory failures, or systematic customer complaints) more likely result in approval denial than conditional approval.

Evaluate pre-sale remediation economics carefully. If repair costs less than the buyer’s discount for deferred issues, remediate before sale. Example: $40,000 equipment upgrade costs less than the $75,000 buyer discount you’d otherwise accept, so upgrade before marketing. But if modernization would cost $50,000 but only address a $30,000 buyer concern, document the issue and accept buyer credit at closing (with appropriate escrow protections).

Preparing Buyers for Franchisor Approval

Smart buyer selection and preparation substantially improve approval probabilities and timelines, though they cannot guarantee success. Not every interested buyer will satisfy franchisor requirements, and understanding qualification standards before engaging candidates prevents wasted effort and market exposure.

Understanding Buyer Type Dynamics

Franchisor approval probability varies significantly by buyer type. Understanding your franchisor’s historical preferences before selecting buyer candidates helps focus your efforts:

If your franchisor requires owner-operators, private equity groups and passive investors waste your time regardless of their financial qualifications. If experience requirements demand restaurant backgrounds for your food service franchise, manufacturing executives need not apply.

Buyer Qualification Alignment

Map your franchisor’s buyer requirements before marketing your business. Financial qualification is a minimum threshold, not a guarantor of approval. Franchisors also evaluate operational fit, strategic alignment, and commitment to system standards. Buyers who barely meet minimum requirements face longer approval timelines or conditional approvals.

Structure your buyer search around franchisor requirements, but balance this against market reality. In some markets, the pool of buyers meeting all franchisor criteria may be extremely limited. Perfect qualification screening could eliminate viable buyers who might gain approval with strong applications and franchisor relationship building. The cost of extended negotiation with ultimately-unqualified buyers is substantial: opportunity costs from buyer exclusivity, advisor fees ($10,000-$50,000), extended uncertainty, and missed windows for market conditions. But overly aggressive screening may leave you without any realistic candidates.

Preparing Buyer Application Packages

Franchisor approval applications require substantial documentation, and complete, professional submissions remove administrative delays from the approval timeline. But the primary drivers of review speed are buyer qualification strength and franchisor capacity. Even excellent applications from under-qualified buyers face extended reviews.

Preparation of complete approval packages typically requires six to twelve weeks once buyers commit to the process. Build this timeline into transaction schedules. Common delays include: buyer reluctance to disclose financial information, complex entity structures requiring legal documentation, or credit history issues requiring explanation.

Standard application elements include personal financial statements, credit authorizations, background check consents, business experience summaries, and operational plans. For entity buyers, organizational documents, ownership structures, management identification, and entity financial statements supplement individual owner documentation.

Managing Buyer Expectations

Buyers unfamiliar with franchise transactions often underestimate approval complexity and timeline requirements. Setting realistic expectations early prevents frustration that can kill deals.

Educate buyers about approval processes before accepting offers. Plan for 90-150 days in typical approval scenarios, with 180 days or more possible when franchisors are under-resourced, documentation issues arise, or buyers present complex situations. Even straightforward applications with highly qualified buyers rarely close in under 60 days. Discuss conditions that commonly accompany approvals and how those conditions affect transaction terms.

Smart buyers conduct their own franchisor due diligence, reviewing franchise disclosure documents and speaking with other franchisees about transfer experiences. Encourage this research because informed buyers make better partners through approval processes and prove more likely to close transactions.

Structuring Transactions for Approval Success

Transaction structure choices affect approval complexity and probability. Certain deal approaches create franchisor concerns, while alternative structures may make smoother approvals easier.

Asset Sales Versus Equity Transactions

Asset sales are the most common transfer structure for franchise businesses, though other approaches exist depending on agreement language and franchisor preferences. In asset sales, buyers acquire business assets and receive new franchise agreements. This structure gives franchisors maximum control over incoming owners, which generally makes approvals easier but typically imposes current agreement terms on buyers.

Equity transactions (where buyers acquire ownership interests in entities holding franchise rights) may sometimes avoid full transfer approval requirements depending on agreement language. But modern franchise agreements typically define “transfer” broadly enough to capture equity sales affecting control. Franchisors who discover structure-based avoidance attempts often respond with lease terminations, acceleration of agreement termination, or litigation. Have franchise counsel review any non-asset-sale structure to confirm it complies with your specific agreement language.

Earnout and Seller Financing Considerations

Transaction terms that extend seller involvement create franchisor relationship complexity. Earnout structures that make sellers contingent creditors typically require franchisor acknowledgment. When required, franchisors typically condition acknowledgment on: clear subordination of seller claims to franchisor interests, buyer’s ability to operate without seller involvement, and earnout conditions that don’t affect operational decisions.

Seller financing secured by business assets needs franchisor consent if assets include franchise rights or related collateral. Some franchisors resist arrangements that create ongoing seller interests, viewing them as complications that affect new owner independence. Others accept these structures with appropriate documentation and controls. Discuss earnout and financing feasibility with your franchisor before structuring deals to prevent agreed structures from failing at approval.

Transition Period Planning

Approval timelines rarely align perfectly with desired closing dates. Building flexibility into transaction structures (through extended due diligence periods, approval contingencies, or phased closings) accommodates franchisor timing requirements. But timeline flexibility doesn’t address fundamental approval obstacles like insufficient buyer qualifications or franchisor strategic objections. Flexibility helps manage process uncertainty, not cure substantive problems.

Consider how transition support commitments interact with approval processes. If your continued involvement is valuable to buyers and acceptable to your franchisor, structured transition assistance can bridge gaps between approval timing and operational readiness. But ongoing seller involvement sometimes raises franchisor concerns about clear authority and new owner development.

Navigating Common Approval Challenges

Even well-prepared transactions encounter approval obstacles. Understanding common challenges and resolution approaches equips you to manage complications, though success is never guaranteed, and even franchisees who follow every best practice may face denial or extended delays.

Conditional Approvals

Franchisors frequently issue approvals subject to conditions: equipment upgrades, training completion, development commitments, or performance guarantees. These conditions become negotiating points between buyers and sellers regarding responsibility and cost allocation.

Conditional approvals require careful closing logistics. Establish frameworks before approvals arrive: Are conditions prerequisites to closing or post-closing obligations? If prerequisites, what happens to purchase price or earnout if conditions delay closing? Who bears costs for condition satisfaction if costs exceed original estimates? What remedies exist if buyers don’t satisfy conditions post-closing?

Important caution: Buyer credits for franchisor-mandated work carry significant risk if buyers don’t fund promised work. Require escrow funding, phased release, or pre-closing completion for material compliance issues. Consider whether pre-closing remediation is more protective than post-closing credits, particularly for items exceeding $25,000.

Extended Timeline Management

Approval processes that extend beyond expected timelines stress transactions. Buyer financing commitments may expire. Seller patience wears thin. Market conditions shift. Managing extended timelines requires proactive communication with all parties and contingency planning for various scenarios.

Maintain regular franchisor communication during approval processes. Understand what’s driving delays (incomplete documentation, reviewer workload, additional due diligence, or substantive concerns) and address controllable factors promptly. Keep buyers informed about status and realistic timeline expectations. Build timeline contingencies into purchase agreements: financing extension provisions, deposit release triggers, and walk-away rights protect both parties when delays extend significantly.

When Approvals Fail

While many franchise exits succeed with proper planning, challenges arise more frequently than sellers anticipate. Based on our experience across multiple franchise systems, franchisor denial rates for qualified buyers range from 5-20%, with higher rates during system transitions, when franchisors are implementing strategic changes, or when buyers present marginal qualifications. Most denials reflect buyer qualification failures, but subjective concerns and strategic franchisor decisions also cause rejections.

Sometimes, franchisor approval conditions are economically impossible, requiring capital investment exceeding sale proceeds. Occasionally, approval timelines extend beyond buyer commitment windows. Rarely, franchisors deny approvals entirely, forcing franchisees to continue operations or accept distressed valuations.

Before appealing a denial, assess opportunity cost. Appeals often extend timelines 60-90 days while success rates are limited. If alternate buyers are available, moving to Plan B may be more valuable than pursuing appeals. Appeals make sense if: denial was based on correctable documentation issues, buyer is willing to fund the appeal process, and alternative buyers aren’t available.

Understanding denial reasons thoroughly guides next steps. Some reflect fundamental buyer qualification failures unlikely to change. Others identify correctable issues or negotiable concerns. Evaluate whether appeals, buyer substitution, or alternative exit strategies serve your interests best.

Variance by Franchisor: A Critical Reminder

Throughout this article, we’ve stressed that franchisor practices vary dramatically. This variance deserves explicit attention because applying “typical” expectations to atypical franchisors causes transaction failures.

Systems experiencing growth typically increase buyer requirements over time as unit economics improve and franchisor selectivity increases. Plan conservatively by maintaining operational excellence regardless of current standards. This protects against future standard increases.

Systems facing challenges may relax standards to attract buyers for underperforming locations, potentially creating opportunities for sellers in struggling systems.

Newer franchisors may demand higher qualifications to prove concept viability, while established systems with extensive transfer history may have streamlined processes.

Company-owned dominant systems may view franchisee sales differently than franchisee-dominant systems where transfer support is necessary to system health.

Before applying any framework from this article, verify your specific franchisor’s historical practices. Ask your franchisor relationship manager directly: What’s your average approval timeline? What percentage of applications face denial? What conditions commonly accompany approvals? What buyer types do you prefer?

Actionable Takeaways

Start your franchise exit planning by thoroughly analyzing your franchise agreement’s transfer provisions. Identify approval requirements, buyer qualification standards, fee structures, and timeline expectations. Engage franchise-experienced legal counsel to interpret provisions and identify potential obstacles. Review Item 6 and Item 10 of your franchisor’s current franchise disclosure document for transfer fee details and buyer qualification standards.

Evaluate strategic alternatives before committing to third-party sales. Consider whether professional management, direct franchisor acquisition, franchisee-to-franchisee transfer, or asset liquidation might serve your goals more effectively. For professional management, compare ongoing annual income ($150,000-$250,000 after manager costs for a strong unit) against net sale proceeds. Recognize that continued operation carries risk but also potential appreciation. Only pursue third-party approval processes after determining they represent your optimal path.

Assess your franchisor relationship and operational position honestly. If compliance issues exist or your relationship is strained, address operational fundamentals before initiating formal exit processes. Consult franchise counsel before notifying franchisor of exit intentions if relationship complications exist. Early notification carries risks including accelerated compliance demands.

Screen potential buyers against franchisor qualification requirements before engaging deeply. Understand which buyer types your franchisor prefers and focus your search accordingly, while recognizing that overly restrictive screening may eliminate viable candidates in constrained markets. Prepare complete, professional approval applications that present buyers favorably and anticipate franchisor questions. Build six to twelve weeks into transaction schedules for application preparation.

Budget realistically for total transaction costs. Beyond transfer fees ($10,000-$35,000 typically), plan for legal counsel ($5,000-$15,000), accelerated due diligence ($10,000-$25,000), your time investment (40-60 hours), and contingency reserves for potential complications. Total costs commonly reach $40,000-$90,000 for transactions in our target range.

Structure transactions with approval processes in mind. Use escrow protections for conditional approval items rather than unsecured buyer credits. Build timeline flexibility into agreements, establish frameworks for addressing conditional approvals, and allocate responsibilities clearly between parties. Plan for 90-150 days typically, with 180+ days possible when complications arise. Maintain regular communication with franchisors throughout approval processes.

Develop contingency approaches for common challenges. Know your alternatives if approvals are denied, whether pursuing alternative buyers, appealing decisions, or pivoting to different exit strategies. With denial rates of 5-20% even for qualified buyers, backup buyer candidates and alternative strategies aren’t pessimism. They’re prudent planning.

Conclusion

Franchise exits require navigating a three-party transaction where franchisor interests don’t automatically align with seller or buyer goals. This added complexity catches many franchisees and their advisors off guard, leading to delayed closings, renegotiated terms, or failed transactions. The failure modes are real: approval conditions that destroy deal economics, timelines that exceed buyer patience, or outright denials that force operational continuation.

These practices improve approval probability but cannot guarantee success. Even franchisees who follow every best practice may face denial, extended delays, or approval conditions that fundamentally alter transaction economics. Realistic expectations (including contingency planning and backup strategies) should inform every franchise exit.

But franchisees who understand transfer dynamics and manage approval processes proactively achieve successful exits regularly, even if the process involves more stress and cost than initially anticipated. Strong operational performance, careful buyer selection and preparation, thoughtful transaction structuring, and skilled obstacle navigation transform potential deal-breakers into manageable process steps. Strategic alternatives (from professional management to direct franchisor acquisition) provide options when third-party sales prove impractical.

The framework we’ve outlined applies broadly to traditional business format franchises, though specific requirements and dynamics vary enormously between franchisors. Your situation deserves analysis tailored to your specific agreement, franchisor relationship, and transaction goals. We work with franchisee clients to develop exit strategies that account for the unique constraints and opportunities their franchise structures create, so that when qualified buyers appear, approval processes help rather than frustrate successful transactions.