Selling a Standard Business vs a Franchise in Australia

What You Need to Know and a Handy Checklist

Selling your small business is a big step. If it’s a franchise, there are a few more hoops to jump through. A standard business sale is typically a two-party deal: you and the buyer. But when you’re selling a franchised business, there’s a third party in the mix: the franchisor. That means extra rules, extra paperwork, and sometimes extra costs.

At Bonza, we specialise in selling small businesses, independent and franchised. This guide breaks down the key differences so you know exactly what to expect, plus a practical checklist to keep you on track.

Selling a Standard Business:

The Usual Path

Selling a non-franchise business is generally straightforward:

1. You’re in control
From preparing the business for sale to choosing the buyer, you make the decisions. There’s no external approval process other than lease or landlord involvement, if relevant.

2. You prepare for sale
Get your financials tidy, sort out any lingering issues, and highlight the positives, even if your business isn’t wildly profitable. It’s about presenting the business in its best light.

3. You find a buyer
Bonza helps you market the business, speak to qualified buyers, and negotiate the terms. Once a buyer is interested, they usually conduct due diligence by reviewing your books, leases, and operations before proceeding to contract.

4. You agree the deal
You and the buyer negotiate the sale price and any other terms, such as training or handover support. You’ll both sign a sale of business contract, and once everything is in place, the business changes hands.

No franchisor, no complications
It’s just you, the buyer, and us keeping things on track.

Selling a Franchised Business:

What’s Different?

When selling a franchise, there are more steps and more people involved:

1. Your franchisor has a say
Your franchise agreement outlines how a sale or assignment works. Most franchisors require written notice, buyer approval, and compliance with the Franchising Code of Conduct.

2. First right of refusal
Before you can sell to someone else, many franchisors reserve the right to buy the business themselves on the same terms. It’s their call to pass or proceed.

3. The buyer must be approved
Even if you find the perfect buyer, the franchisor has final say. They typically check the buyer’s finances, experience, and suitability for the brand.

4. Extra documents
Buyers must receive a Franchise Disclosure Document, Information Statement, and often sign a new franchise agreement. This is in addition to the usual sale of business contract.

5. Costs and fees
Franchise sales often involve assignment fees, legal fees, and sometimes training fees for the new owner. These can be charged to you, the buyer, or shared, depending on your franchise agreement.

6. Training and handover are often mandatory
Franchisors want consistency, so training is usually non-negotiable. You may also be required to help onboard the new franchisee.

7. Brand compliance matters
Equipment upgrades, lease reviews, and tidy books are often required before the sale can proceed. You’ll also need to clear any outstanding fees with the franchisor.

8. Restraint clauses may apply
You may be required to agree not to open a similar business nearby for a certain period. These restrictions are often already built into the franchise agreement.

Franchise Sale Checklist With Bonza By Your Side

Check your franchise agreement – Identify any key clauses around selling or transferring your franchise.

Notify your franchisor- You’ll need to let them know (in writing) that you plan to sell. If they have the first right to buy, we’ll guide you on how to handle it.

Get your business ready – We’ll help you present your financials and operations in the best light to attract qualified buyers.

Let Bonza find your buyer – We’ll market your business, handle buyer enquiries, qualify genuine prospects, and keep you in the loop at every step

Clarify the process for buyers – We’ll explain the franchisor approval steps to buyers early so they know what to expect.

Share sensitive info securely – With our confidentiality agreements in place, you can safely share important details with serious buyers.

Provide the right documents – We’ll make sure buyers receive the Franchise Agreement, Disclosure Document, and Information Statement, all required by law.

Draft the sale contract – We’ll guide your lawyer to ensure the contract includes everything the franchisor requires, including consent clauses and fee terms.

Coordinate the approval and training – We’ll liaise between you, the buyer, and the franchisor to keep things moving, including training schedules and final signoffs.

Manage the handover – We’ll help support a smooth transition for the new owner, including staff handover, systems, and supplier introductions.

Wrap up the sale with confidence –  We’ll ensure all documents are signed, settlement is finalised, and your exit terms are honoured, so you can move on knowing it’s all done properly.

Selling a franchise takes a little more planning, but it’s nothing to fear, especially with Bonza in your corner. We’ve helped hundreds of franchise owners navigate the process with minimal stress and great results. Whether you’re selling a café, a cleaning franchise, or a fitness studio, we’re here to make it happen.

Got questions about selling your franchise?

Let’s chat – We’ll guide you through every step and help you get the best outcome fast.