If you plan on selling or transferring a franchise in New York, there are legal issues that will need to be dealt with to complete the sale or transfer. One of these issues is interpreting the terms that were agreed to in your franchise agreement. To help you through this process, you can get the professional help of a New York franchise lawyer. Transferring a Franchise in New York
Generally, a franchise agreement will allow you to transfer your franchise in New York. When transferring a franchise, some of the typical conditions that will apply include:
that the transfer must be in writing, and must include a provision that the recipient of the franchise agrees to assume all of the obligations and responsibilities established in the franchise agreement, for instance the obligation to pay royalties and keep the franchisor's trade secrets;
that the original franchisee will remain liable under the franchise agreement. In other words, if after transferring a franchise in New York, the new franchisee breaches the franchise agreement, then the original franchisee may be held responsible for the breach;
that the franchisor receives written notice of the proposed transfer, the name and address of the transferor, and the financial terms of the transaction; and
that transferring a franchise cannot take place without the franchisor's written consent.
Furthermore, before transferring a franchise in New York, the franchisor may require:
proof that the transferor has the business experience, capability, credit standing, and financial resources to successfully operate the franchise in New York;
that the transferor has successfully completed the necessary franchise training course; and
that the transferor agrees to pay all money owed to the franchisor before transferring a franchise.
IMPORTANT DISCLAIMER: The information contained on this website is provided for general educational purposes only, should not be relied on as legal advice and does not serve to create an attorney client relationship. In utilizing this website you acknowledge that there is no attorney client relationship between you
and Charles N. Internicola, Esq. and that the information contained on this site does not and cannot serve as a replacement for the competent legal advice of a licensed attorney in your state. Further you acknowledge that any and all citations to cases and statutes must be independently verified by competent legal counsel to confirm the validity and accuracy of such information. The content of this site is subject to the Copyright of its author and owner, Charles N. Internicola, Esq.
