Franchise unit sale
The transfer by a franchisee of their contractual rights and business to a third-party buyer. This is typically subject to the franchisor’s prior approval, which usually includes a right of first refusal and a right to vet the incoming operator.
In practice
A unit sale is one of the main exit routes for a franchisee wishing to monetise their investment. The sale price depends on revenue, profitability, location, and remaining contract term. A unit with two years remaining sells for less than one with seven years — residual term is a key value component. The franchisor often plays an active role in connecting sellers with prospective buyers within the network.