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.