A franchise resale (also called a resale or transfer) is buying an existing, already-trading franchise unit from the current franchisee, rather than directly from the franchisor.

Key differences from buying new

1. Established vs start-up Resale = existing customers, staff, location, proven trading history and financials. New = you build from scratch (site selection, fit-out, launch marketing).
2. Speed & risk Resale = faster start-up (often 1–4 months to complete), lower risk with real performance data. New = longer setup (6–18 months), higher risk (untested location/performance).
3. Costs Resale = usually higher upfront price (includes goodwill), but immediate cash flow. New = lower initial franchise fee, but heavy setup costs (fit-out, stock, marketing).
4. Franchisor involvement Both require approval, but resale involves transfer fees, handover period, and franchisor vetting of the buyer.

Pro tip Resales often offer better value if the unit is performing well – you buy proven results rather than potential.

Ready to explore franchise resales? Book your free, confidential franchise buyer consultation with us. We’ll help compare resale vs new options, find suitable units, and navigate franchisor approval – no obligation, 100% confidential

Selling a franchise is similar to other business sales but with mandatory franchisor involvement and specific transfer rules.

Steps to sell your franchise

1. Review your franchise agreement – Check resale clauses, transfer fees, approval process, right of first refusal.
2. Notify the franchisor – Get preliminary consent and understand their requirements.
3. Prepare the business – Clean financials, strong performance, documented handover plan.
4. Get a valuation – Specialist franchise valuation (often higher than independents due to brand support).
5. Market discreetly – Via specialist broker or franchisor resale portal.
6. Find a qualified buyer – Must meet franchisor criteria.
7. Complete transfer – Pay fees, complete training/handover, sign documents.

Pro tip Start 6–18 months early – franchisor approval can add months.

No – in almost all cases.

Nearly every UK franchise agreement requires the franchisor’s prior written approval for any resale or transfer. Selling without it typically breaches the contract and can lead to termination, loss of territory rights, or legal action.

Why approval is required

• To protect brand standards and reputation
• New buyer must meet financial, experience, and training criteria
• Franchisor often has right of first refusal

Pro tip Some agreements allow easier transfers to family members, but third-party sales always need consent. Check your specific agreement early.

Unsure about your rights? Book your free franchise consultation – we’ll review your agreement and explain resale options.

Reselling a franchise follows a structured process with franchisor oversight.

Typical resale steps

1. Review franchise agreement – Understand resale rights, fees, approval timeline, restrictions.
2. Notify franchisor – Submit formal intent to sell and get preliminary consent.
3. Prepare for sale – Clean financials, performance data, handover plan.
4. Valuation – Specialist franchise valuation (often higher due to brand support).
5. Market the unit – Discreetly via broker or franchisor resale portal.
6. Find & qualify buyer – Buyer applies to franchisor for approval.
7. Franchisor vetting – Financial checks, training, consent.
8. Transfer & handover – Pay fees, complete legal transfer, training/handover.

Pro tip Start 6–12 months ahead – franchisor approval often takes 2–6 months.

Ready to start your resale? Book your free franchise valuation & resale MOT – we’ll map the full process for your brand.

Typically 6–12 months from decision to completion – longer than many independent businesses due to franchisor approval, buyer qualification, and training.

Breakdown of timeline

1. Preparation & franchisor notification (1–2 months)
2. Marketing & finding buyer (2–4 months)
3. Franchisor approval & training (2–4 months)
4. Legal transfer & handover (1–2 months)

Pro tip High-performing units sell faster; franchisor resale portals can accelerate buyer matching.

Need a realistic timeline for your franchise? Book your free franchise valuation – we’ll give a tailored timeline based on your brand and performance.

Franchise agreements are strict to protect the brand – common resale restrictions include:

1. Mandatory franchisor approval – Almost universal requirement.
2. Right of first refusal – Franchisor can match any offer and buy it themselves.
3. Transfer fees – £5,000–£25,000+ (admin, training, vetting).
4. Buyer criteria – Financial strength, experience, clean record.
5. Training requirement – New owner must complete franchisor training.
6. Non-compete / territory rules – Seller may be restricted post-sale.
7. Timing restrictions – Some prohibit resale in first 2–5 years.

Pro tip Restrictions vary by brand – review your agreement early.

Unsure about your restrictions? Book your free franchise consultation – we’ll review your agreement and highlight resale rules.

Franchise resales often achieve higher values than independent businesses due to brand support, proven model, and lower risk.

Common valuation methods

1. EBITDA multiple – 3–7× maintainable profit (higher for strong brands).
2. Revenue multiple – 0.5–2× turnover (common in retail/food franchises).
3. Goodwill + assets – Brand value + equipment, stock, lease premium.
4. Comparables – Recent resales in the same network or sector.
5. Franchisor guidelines – Some brands provide resale valuation support.

Pro tip Performance (sales, profitability, location) drives the multiple – well-run units can achieve 4–6× EBITDA.

Want to know your franchise’s resale value? Book your free franchise valuation. We’ll provide a realistic range and explain value drivers.

es – in virtually every case.

UK franchise agreements almost always require the franchisor’s prior written consent for any transfer or resale. Selling without permission breaches the contract and risks termination or legal issues.

Exceptions (rare)

• Transfers to family members (some agreements allow lighter approval).
• Third-party sales always need consent.

Pro tip Notify the franchisor early – they can help market to approved candidates.

Need clarity on your agreement? Book your free franchise consultation – we’ll check your resale rights and next steps.

Fees vary by brand but typically total 5–15% of the sale price – similar to other business sales.

Typical resale fees

1. Franchisor transfer fee – £5,000–£25,000 (admin, vetting, training).
2. Training fee – For new owner (£2,000–£10,000).
3. Broker fee – 5–10% success fee (if using a specialist).
4. Legal/accounting – £3,000–£10,000 (your side + buyer’s).
5. Other – Stock valuation, lease assignment costs.

Pro tip Negotiate transfer fee with franchisor where possible; some reduce for high-performers.

Want a full fee breakdown for your franchise? Book your free franchise valuation – we’ll estimate net proceeds after fees.

Yes – but it’s more challenging and usually at a lower price.

Underperforming units can still sell, especially if the brand is strong and there are turnaround opportunities.

Challenges when selling underperformers

1. Lower valuation – Often asset value or low multiple.
2. Franchisor scrutiny – They may require improvement plan or reject weak buyers.
3. Smaller buyer pool – Only turnaround specialists or bargain hunters.
4. Longer timeline – 9–18 months typical.

Opportunities Franchisors sometimes assist (marketing support, fee waivers) to avoid brand damage.

Pro tip Even modest improvements (cost control, marketing) can significantly boost offers.

Underperforming but want to exit? Book your free franchise consultation – we’ll assess realistic value and strategy.