If you already have a potential buyer, we will prepare the Contract of Sale and work with the Buyer or the Buyer’s solicitor if one is appointed, to finalise the details in the Contract. You don’t need an agent to do this as the Contract is done by the lawyers anyway. If you are using an agent to find the Buyer, make sure you factor their fees into your sale price.
In the event you do not settle the transaction, we will only charge for whatever time was recorded on the file so you’re only paying for exactly what you used. Once you find another Buyer, we can then use the same company search, PPSR searches, etc from your terminated contract to save you doing them again, so that will save you on the second transaction also.
No, fortunately you can just use the “Standard Sale Package (No Lease)” option because the Buyer will get a new Outlet License with a copy of the Lease, so there is minimal legal work for us to do on the lease side of things in that scenario.
This will depend on which State of Australia you are selling your business in, but generally speaking the Seller pays the cost of the Landlord’s legal fees, which often range between $2,000 to $5,000 depending on the law firm they engage. In some States, such as Queensland, the Landlord cannot charge for a new lease, so if the Buyer opts for a new lease, there is no or minimal cost to you other than releasing the lease you’re currently in.
It may well be the case. Most franchise agreements stipulate that you must give the Franchisor, or an associate of the Franchisor, first right of refusal on your business so they can choose to buy it at the price you intend to sell it to a third party for. There may be a specific process and timeframes to be followed in your franchise agreement so we’ll advise you on this. If the Franchisor does not agree to purchase it, then you can sell it to a third party. But if you change the price and deal terms, it is often the case you need to offer it to the Franchisor again on the better terms.
We will review the Franchise Agreement and advise you on this also – preferably before you set your sale price, so you can account for this cost in the sale price. Often, franchisors will charge a Transfer Fee which tends to be around 2% of the sale price or $10,000 whichever is the greater. But each franchise agreement is different. Some franchises also charge a Sale Administration Fee, and some will also charge a fee for preparing the Deed of Release, which releases you from your obligations under the Franchise Agreement and any guarantees you provided in that regard.
The Franchisor has the right to refuse a prospective Buyer if they feel they would not make for a suitable Franchisee for their brand, although the Franchisor has to act reasonably. The Franchisor may also initially approve them but if the Franchisee does not pass the training and testing requirements prior to Settlement, the Franchisor may not give consent, and you will need to find a new Buyer, and will not be compensated for any loss you’ve suffered.