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Anyone ever bought a business from a franchisee?

EcomEricMarch 18, 2026
There's a franchise resale I'm looking at — cleaning company under a national brand. The unit economics look good but I've never dealt with a franchisor before. Do they have to approve the sale? Can they change the terms on me? Feels like I'd have two bosses.
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Replies (2)

Yes the franchisor has to approve you. You'll go through their application process just like a new franchisee. They can reject you. Read the FDD cover to cover before signing anything — the royalty structure and marketing fund fees can eat your margins alive.
I looked at a franchise resale once. Walked away because the franchisor had a right of first refusal — they could match any offer and buy it themselves. Made the whole negotiation feel pointless.