1 June 2026

Franchise Business Sales

What to Expect from Franchise Territory Buyer Due Diligence

A step-by-step guide to what buyers examine when acquiring a franchise territory: financial due diligence (normalised EBITDA, addback scrutiny, revenue concentration), client and contract DD (signed service agreements, assignability, recurring vs transactional income), franchise agreement DD (remaining term, compliance history, performance notices, territory definition, transfer provisions), operational DD (CRM, equipment finance, subcontractor status), the franchisor parallel approval process, and how to prepare your data room before the business goes to market.

Franchise Business Sales

Franchise Territory Earn-Out Mechanics: How Deferred Consideration Works

A franchise territory earn-out is deferred consideration paid after completion, conditional on agreed performance targets. This guide covers performance metrics (revenue, EBITDA, client retention, recurring income), non-interference covenants (fee integrity, service standard, client offboarding, entity consolidation ring-fencing), BADR treatment under Marren v Ingles, dispute resolution mechanisms, and what good earn-out terms look like.

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