Change of ownership (of a franchise system)
What it means
Franchise systems are bought and sold. When the franchisor entity or the system changes owners, franchisees can be affected, new management may change support, suppliers, fees within the limits of the Code, or strategy.
The Code imposes obligations around a change of ownership, including keeping franchisees informed. A new owner steps into the existing agreements and must continue to act in good faith toward the network.
In practice
If you hear a system is being sold, ask what it means for your agreement, support and supply. Existing agreements generally continue, but the culture and priorities of a new owner can materially change your experience.
A real example
A private-equity firm buys a cleaning franchisor. Existing franchisees are notified of the change of ownership; their agreements continue, but they watch closely for changes to support levels and approved-supplier arrangements.
Change of ownership (of a franchise system), FAQs
What happens to my franchise if the franchisor is sold?
Your agreement generally continues with the new owner, who inherits the franchisor's obligations. You should be kept informed, and the new owner must still act in good faith.
Can a new franchisor change my fees or terms?
Only within the limits the Code and your agreement allow, the same restrictions on unilateral and retrospective variation apply to a new owner.
See the full franchise glossary, the Fee Index or our buyer guides.