The franchisor will usually retain the right to transfer the benefit of the agreement so that it is available for its assignees. The franchisee’s rights are unlikely to be freely transferable.
The franchisee may require the consent of the franchisor to sell or transfer the business or any interest in the business. It may be that the consent is not to be unreasonably withheld.
Sale of the Franchisee’s Interest
A buyer of a franchise or development business or company will require extensive information. It will need to understand the nature of the franchise and the elements that sustain the value of the business.
The agreement will provide for termination for cause or otherwise. The agreement will expire in accordance with its natural term unless earlier terminated for breach or in other circumstances in which a right of termination arises.
The franchisee will be restricted from engaging in a business which competes with the franchisee’s business before and, perhaps for a period after termination. It is likely that the franchisee will be restricted from assisting in or procuring third parties to engage in competition with the franchisor.