"If you are seeking to invest in a franchise business which is already operating, rather than a brand new start up franchise opportunity, there a few further consideration involved. The existing franchisee will be selling his business to you for an agreed price (market value) in the same way as if you were buying another business, which was not run as a franchise. The franchisor will have to consent to the sale and you will have to meet the franchisor's criteria in terms of personal profile, background, financial support etc. in exactly the same way as if you were looking to invest in a new franchisee and going through the recruitment process. You will also be required to undergo training a various fees will be payable to the franchisor (usually by the outgoing franchisee but recouped within the sale price to you).

If the franchisor does approve the sale to you, you will be required to enter into a new franchise agreement on the then current format used by the franchisor. This may be different from the format signed by the franchisee selling the business and will need to be reviewed by a solicitor specialising in franchising (a BFA affiliate). You should check that the term of the agreement, or the remainder of the term which you are taking over, is sufficient for you to make a return on your investment.

A further document will be signed - the business transfer agreement- which will transfer the assets of the franchisee's business to you. This will include stock, equipment etc. and staff will automatically transfer to your employment upon transfer. There may also be an assignment of the lease of any premises. These documents, unlike the franchise agreement, which will be a standard document, will be negotiated between the respective solicitors and you should ensure that you are given sufficient warranties and indemnities by the former owner in relation to the activities of the business prior to sale.