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Selling a Franchise Business in Dallas-Fort Worth: Franchise Resales Explained
By Josh Campbell, Business Broker · First Choice Business Brokers Dallas Metro · Updated October 2026
How franchise resales differ from independent sales
| Item | Independent business | Franchise resale |
|---|---|---|
| Buyer approval | Seller decides | Franchisor must approve the buyer |
| Transfer fee | None | Usually required |
| Training | Seller trains the buyer | Franchisor training often required |
| Upgrades | Buyer's choice | Remodel or equipment upgrades may be required |
| Right of first refusal | Rare | Common, and the franchisor may match your offer |
| Remaining term | Not applicable | Buyers and lenders look closely at years left |
What drives franchise resale value
| Factor | Raises value | Lowers value |
|---|---|---|
| Profitability | Consistent, documented profit | Losses or declining profit |
| Brand strength | Well-known, growing brand with good support | Struggling or shrinking brand |
| Territory | Protected, attractive territory with growth room | Overlapping or saturated territory |
| Remaining term | Many years left, or simple renewal | Short remaining term, costly renewal |
| Upgrades | Recently remodeled and current | Required remodel coming soon |
| Owner role | Manager-run, semi-absentee | Owner works full time in the business |
| Lease | Long, transferable lease | Short lease |
| Royalties and fees | Reasonable fees relative to support | High fees eating profits |
The franchise transfer process
- Review your franchise agreement for transfer terms, fees, right of first refusal and upgrade requirements.
- Notify the franchisor at the appropriate time.
- Market the business confidentially to qualified buyers.
- The buyer applies to the franchisor and goes through approval.
- The buyer reviews the Franchise Disclosure Document (FDD).
- The buyer completes franchisor training.
- Sign transfer documents, pay fees and close.
SBA financing for franchise resales
Many franchise resales are financed with SBA loans. Brands listed in the SBA Franchise Directory can move through lender review more smoothly. Buyers and lenders will want enough remaining franchise term and lease term to cover the loan.
Who buys franchise resales
- First-time business owners: drawn to a proven system and training
- Existing franchisees: adding units in their brand
- Multi-unit operators: building territory
- Investors: looking for semi-absentee businesses with managers in place
How to prepare your franchise for sale
- Review your franchise agreement and transfer requirements.
- Address required upgrades, or price them into the deal.
- Secure or extend your lease.
- Develop a manager so the business isn't owner-dependent.
- Gather franchisor reports, sales data and royalty statements.
- Stay in good standing with the franchisor.
- Clean up your financials and document your add-backs.
Josh's take: In every franchise resale there's a silent third party at the table: the franchisor. They approve the buyer, collect the transfer fee and may hold a right of first refusal. Read your franchise agreement before you list, not after you have an offer. A buyer who's already been through the franchisor's discovery day and qualifies for SBA financing can make a resale move surprisingly fast.
Frequently asked questions
What multiple does a franchise resale sell for?
Most commonly about 1.5 to 3.5 times SDE, depending on brand, profit and remaining term.
Does the franchisor have to approve my buyer?
Almost always, yes. Buyers apply to the franchisor and must meet its financial and experience requirements.
What is a right of first refusal?
It lets the franchisor match an offer you accept and buy the business on the same terms. Check whether your agreement includes one.
Who pays the transfer fee?
It varies by deal. The fee is set by the franchisor, and who pays is negotiated between buyer and seller.