Many Franchise Agreements Are Drafted to Provide the Franchisor a Unilateral Right to Purchase a Franchise

In an article published on May 11, 2016 by Franchising Today, Scott Augustine, Jill Johnson and Scott Ratchick discuss franchise agreements. The article details the steps a franchisee should take to plan for an exit strategy including terms they should be aware of in the agreement such as integration or merger clauses, personal guarantees and rights of first refusal. Augustine, Johnson and Ratchick emphasize that whether you are an existing franchise owner or exploring the purchase of a franchise business, it is worth paying close attention to whether the franchisor has the right to repurchase the franchised business from you.