How do you go about resale of a franchise?

In North Carolina, when resale of a franchise is desired, the first step is to contact the current owner and the franchisor for permission to buy the franchise. The franchisor can approve the sale transfer if the buyer is considered suitable. The buyer must fill out an application and provide documents, such as a credit report and financial statements. The franchisor can deny the transfer if the buyer does not meet their criteria. The second step is the negotiation process, during which the buyer and seller come to an agreement about the sale. The buyer will need to sign a new Franchise Agreement, as the terms of the previous agreement may no longer be applicable. The agreement should include the franchisor’s applicable terms, such as the royalty rate and other fees. The final step in the resale process is the closing of the sale. At this time, all payments and other documentation related to the sale must be exchanged. After the closing, the buyer and seller will need to provide the franchisor with a copy of the sale documents. The franchisor must provide the buyer with the Franchise Disclosure Document and any other relevant documents. Once these steps are completed, the buyer can begin to operate the franchise. It is important to remember that the franchisor may retain the right to terminate the franchise agreement if the buyer fails to abide by the franchise agreement.

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How do you go about resale of a franchise?

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