Franchisor consent and buy-back rights

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by a searcher from University of Sydney
in Sydney NSW, Australia

2yrs ago

Franchisor consent and buy-back rights

Would you ever consider buying a franchise operation that has both a consent to transfer right and first right to buy-back the franchise operation?

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reply by a searcher 2yrs ago
from University of California, Berkeley in San Francisco, CA, USA

Strength of the franchisor brand is highly correlated to the performance of its franchisees. If I were an existing franchisee I have a vested interest that my brand to has the vetting and legal mechanisms to veto franchisee changing hands. I think thats quite common with franchised businesses. FWIW

reply by a professional 2yrs ago
from University of Southern California in North Palm Beach, FL, USA

Beware !!!!!!! Doing your homework will uncover the fallacy of lower risk in the franchise sector. As one of the searchers said to me, "why would I want to rent a business when I can own one?"