What is a franchise transfer?
Last reviewed July 6, 2026
A transfer is the sale of an existing franchise unit to a new owner. Nearly every agreement requires the franchisor's approval of the buyer and a transfer fee, and many give the franchisor a right of first refusal — it can buy the unit itself on the same terms instead. Because approval is discretionary, transfer terms largely decide what your business is worth on the way out.
Buying a transfer (a resale) is also how many people enter franchising — real books, trained staff, and a known location instead of projections. Diligence differs: you're evaluating a specific unit's P&L and lease as much as the system, and the reason for sale matters. Either direction, the renewal clock and remodel obligations transfer with the unit.