There are a number of ways by which an individual can acquire an interest in a franchised business. Most commonly, a franchise is acquired by the purchase of an existing franchised business or by obtaining the right to establish and operate a new franchise. For example, an individual who is interested in acquiring an automotive repair franchise may seek to purchase an existing location from a current franchisee. Alternatively, this individual could approach the franchisor to acquire the right to construct and operate an automotive repair shop at a certain location using the franchisor’s trade name and systems of operation.

type Acquiring a Franchise - Key Considerations