Don franchisees have the right to sell or transfer their franchises if they wish? If not, isn the right to sell or transfer a business the exclusive right of the owner of the business?
Franchisees don’t necessarily have the right to sell or transfer their franchises, because the premise of this question is not entirely accurate. The franchisee certainly owns “something”, but in most cases this “something” is only the franchise – not the business. At the end or expiration of a franchise agreement, the franchisor has the unbridled right to discontinue doing business with the franchisee. The franchisor can refuse to renew the franchise agreement, unless it specifically and explicitly grants the franchisee the right to renew. There are certainly limited exceptions to this rule, but they are few and far between. Regarding the right to sell or transfer the franchise, the franchise agreement almost always gives the franchisor a “right to consent” to a sale or transfer by the franchisee. Some franchise agreements include the “right of first refusal.” This right permits the franchisor to match a third party’s offer to purchase the franchisee’s business. Franchisees frequently
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