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Article: Issues Concerning Franchise Transfers by Franchisees and Franchisors.(business)(Brief Article)
- Article from:
- Franchising World
- Article date:
- July 1, 2001
- Author:
CopyrightCOPYRIGHT 2001 International Franchise Association. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Franchise transfers occur when the franchisee elects to sell or assign any portion of the franchise agreement, assets of the business, and/or the business itself before the expiration of the term of the franchise agreement. They also occur when a franchise system attempts to sell all or part of its system. Such asset transfers are complicated because "franchise" assets are held in a complex contractual arrangement where the franchise system is the owner of the business methods and trademarks, but the franchisee might own the real and personal property.
With regard to franchisee transfers, franchise agreements typically contain provisions that limit a franchisee's ...