A franchise is an entity or branch of a business which the owner of the business hands over to another person or party for fixed period of time. During this period, the franchisee runs the operations of the business. But a franchise sale is that situation where the owner of a business sells off the franchise totally to the franchisee.
A franchise sale contract is a legal arrangement between a franchisor and a franchisee where the franchisor agrees to sell the franchise to the franchisee for a permanent duration. Such contracts must state clearly the transfer-ship arrangement and should be drafted formally.
A franchise sale contract must consist of the information of the involved parties such as their names, addresses, contact numbers as well as the details of the business or business branch that is being sold. The terms and conditions of such contract must clearly give all the details and the responsibilities of both the parties after the sale takes place.
The cost of the franchise for which the franchisee has bought it must also be given clearly along with the method of payment and the other payment related details. Such a contract is a legally enforceable document whose terms cannot be violated.
Sample Franchise Sale Contract: