If you plan on selling a franchise in New York, many of the same conditions for transferring a franchise will apply. However, there may be additional conditions that must be met before selling a franchise. These conditions include:
that the franchisor receives written notice of the proposed sale, including information such as the name of the buyer and the purchase price;
that the franchisor is granted the first right and option to buy the franchise in New York. Typically this right is granted for 10 to 20 days at the same price that is offered to the buyer; and
that if the sale is not completed within a certain amount of time, such as within 90 to 120 days of the offer, then the franchisor must once again be notified of the proposed sale, and given the opportunity to buy the franchise in New York.
Considerations before Transferring or Selling a Franchise in New York
Before transferring or selling a franchise in New York, there are several things you should consider. Some questions you may want to ask your New York franchise lawyer include:
if after transferring a franchise in New York, the recipient breaches the franchise agreement, can I sue the recipient to recover damages that must be paid to the franchisor?;
is transferring a franchise more advantageous than selling a franchise in New York?; and
if a franchisor refuses to allow the sale, what further steps may be taken?
How a New York Franchise Lawyer Can Help
If you are a franchisor in New York, a New York franchise lawyer can help you establish the terms listed above. The terms for transferring or selling a franchise should be written into the franchise agreement. This way, when it comes time to transfer or sell a franchise, the rules will have been established and your New York franchise lawyer can help defend your interests. Contacting a New York Franchise Lawyer
If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your FDD. For a limited time, get New York franchise lawyer Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.
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