Franchise Attorney in New York, New York
What documents do I need to sell my franchise?
What documents do I need to sell my franchise?
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if you’re the franchisor you’re going to
need the fdd
uh and you’re going to need the
application from the franchisee and
you’re also going to need all of the
agreements which are exhibits to the fdd
but ultimately the franchisee is going
to have to sign them there’s going to be
a franchise agreement there’s almost
certainly going to be a guarantee
non-disclosure agreements there are
agreements that cover trade secrets
there is typically a um a marketing
agreement there’s also typically
uh a an agreement that uh that covers
your you know your your confidential
information and it also covers you you
know the the method by which you’re
operating uh your franchise there’s a
operations manual that the franchisor is
going to apply to you so you have a
variety of documents that the franchisor
is going to
require of the franchisee to sign if
you’re a franchisee and you’re selling
you’re going to you’re going to need
all of those documents because they’re
all going to bind the franchisee who’s
taking over your franchise but you’re
also going to need
all of your business information because
if you’re a franchisee you’re selling
your business so you’re going to need
your tax returns you’re going to need
your profit and loss statements you’re
going to need a statement and list of
all of your creditors because they’re
all going to have to be dealt with in
the purchase of the business so you’re
going to have
what the franchisor is going to require
plus what the franchisee
who’s selling the business needs to
provide for any prudent purchaser of the
business
New York, NY franchise law attorney Richard L. Rosen discusses the documents you will need to sell your franchise. When representing the franchisor, he explains that they will need the Franchise Disclosure Document (FDD), the franchisee’s application, and all agreements that are exhibits to the FDD. Ultimately, the franchisee must sign these documents, which typically include the franchise agreement, a guarantee, non-disclosure agreements, trade secret protections, a marketing agreement, and an operations manual covering confidential information and the franchisor’s methods of operation.
For a franchisee selling their business, he notes that all of these same documents are required for the incoming franchisee, as they will be bound by them. Additionally, the selling franchisee must provide comprehensive business information, including tax returns, profit and loss statements, and a detailed list of creditors, since all of these factors must be addressed in the sale. Essentially, the purchaser needs both the franchisor’s required documents and the seller’s business information to ensure a proper and prudent transaction.
