The world is a franchise often becomes necessary to allow the transfer of its franchise rights to franchise a new entity or individual. It's kinda worrying to see all their hard work in training and marketing franchise go to waste. If it is a really good strong franchise, it is often traumatic because it replaces so great franchise could be next to impossible for a particular market.

But as we know things change all the rage is the only constant is change, it is something that franchisors have to deal with. After the franchise for nearly two decades, it became obvious to me that often it is best for us to buy the franchise and run a certain way as a franchise company owned stores. So we should be sure first right of refusal if the franchise would like to sell their rights. Below is a clause that I have designed and put into our franchise agreements for this very reason,

5.6 Right of first refusal

5.6 Right of first refusal

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This is an issue that we all Franchisors will have to deal with and it behooves them to consider all possible options in advance and that they were in the original franchise agreement. You would be well advised to talk with an experienced franchise lawyer about how to design a clause in their franchise agreement that will best protect your company and is fair to the franchise buyer. You'll save yourself a lot of problems down the road if you do this. I hope you will consider this in 2006.

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