Unit resale
Unit resale refers to the acquisition of a location from a departing franchisee, either by the franchisor directly or by an incoming franchisee. It is governed by the franchise agreement and may include pre-emption rights in favor of the franchisor.
In practice
A franchisee wishing to sell after ten years must generally obtain the franchisor’s approval of the buyer’s profile. The franchisor may exercise a right of first refusal to take back the unit, then resell it to a better-qualified candidate. In a healthy network, unit resale is a routine transaction that preserves business continuity without any visible closure to customers.