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Professional Standards Manual

Trading Services

10. Sale Of A Business

(i) Sale of Franchise Requires Real Estate Licence

Subject to the licensing exemptions, a sale of a franchise as an operating business, whether sold on behalf of the franchisor or of the franchisee, is governed by the requirements of RESA if the business also includes the sale or lease of real property.

Buyer Approving Franchise Agreement Clause

Subject to the Buyer receiving, perusing and being satisfied with the franchise agreement on or before (date) .

This condition is for the sole benefit of the Buyer.

The licensee should allow time on the contract for the seller to provide the documents to the buyer and to allow the buyer time to review them.

Franchisor Approving Assignment of Franchise Clause

Subject to the franchisor’s written approval of the assignment of the franchise on or before (date) .

This condition is for the benefit of both the Buyer and the Seller.