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    Legal strategy selling franchise assets restricted by franchisor
    Hello, I own a US based home services franchise business that I am considering exiting. The revenues are ~$900k annually but the owners discretionary income is likely <$50k, still sharpening the pencil on that.

    In order to have the most flexibility and sell to the widest audience, I'd like to have the option to sell the business assets: clients,employees&prospects, without selling the franchise rights themselves. One can operate this business without much operationally from the franchisor. Although I am struggling to determine where it does, I am told that my Franchise Disclosure Document restricts me selling my clients with the franchisor approval.
    >> My first question is how would they enforce this? If I sell the assets to another company - I assume the only thing they could try and do is sue me? If the business isn't worth that much I doubt they would pursue.
    >> My second question is - I wonder if a way around this restriction is to "give away" my assets for some some years-away option in the purchasing entity - say options to purchase equity some time away. I don't need to nor expect to make much money off the business sale, so picking up some potential future equity has upside.


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    In return, however, they get complete control. Although independent business owners retain total control over their companies, they don't have access to the support franchisors provide their franchisees in marketing, operations, supply chain management, human resources and other departments.


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