Franchise Transfer
Also known as: Franchise Assignment, Ownership Transfer, Franchise Change of Ownership
A franchise transfer is the process by which a franchisee sells or assigns their franchise rights and obligations to a new owner, as governed by the transfer provisions in the franchise agreement (disclosed in Item 17 of the FDD). Unlike a simple business sale, franchise transfers require the franchisor's approval, which typically cannot be unreasonably withheld. The transferee (buyer) must meet the franchisor's current financial and operational qualifications, complete required training, and pay a transfer fee. The franchisor may also require upgrades to bring the location up to current brand standards. The transfer process typically takes 60-120 days and involves coordination between the seller, buyer, franchisor, landlord, and lenders.
Real-World Example
A franchisee selling their Anytime Fitness location after 7 years must obtain franchisor approval of the buyer, who must complete a 5-day training program and meet minimum net worth requirements ($300,000). The transfer fee is $15,000, and the franchisor requires $25,000 in equipment upgrades before approving the transfer. The entire process takes approximately 90 days.
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Explore FDDIQ Franchise DataLast updated: April 2026