ArticlesThe Unit Franchise Agreement: Transfer of a Franchise - Legal ConsiderationsPublished: 03/30/2010 Frank Robinson's article, "The Unit Franchise Agreement: Transfer of a Franchise - Legal Considerations," was published in Focus on Franchising, Volume 1, No. 2. Focus on Franchising is a publication of the Ontario Bar Association's Joint Subcommittee on Franchising, Business Law and Civil Litigation Sections. About the Article: In some respects a franchise system is not unlike a family, with its franchisees as its children and its franchisor the parent. While it is true that one does not choose one's family, a franchisor, on the other hand, is free to assemble its franchise system from carefully selected candidates that exhibit the characteristics, personalities and abilities it considers essential for success. It should come as no surprise, then, that like a concerned parent, a franchisor will take great interest in the manner, timing and persons involved when a franchisee wishes to transfer his franchise business. It is for this reason that a typical franchise agreement will contain detailed provisions dealing with the transfer of the franchise, including the imposition of certain conditions precedent to the granting of the franchisor’s approval of the transfer, and various other issues which are briefly described and discussed in this article. |