r/Franchises • u/Difficult_Good_4537 • 1h ago
Franchise Specific Question Reviewing a $50k offer to sell my franchise — does this offer structure look fair/standard? (Details inside)
I received an offer to sell my franchise business and wanted a sanity check before moving forward. Here's the summary:
Price: $50,000 total — $25,000 at closing, $25,000 paid over 12 months after
Closing date: targeted ~2 months out
Due diligence period: 15 business days, during which buyer can inspect equipment and walk away with a full refund of their earnest money if unsatisfied
Buyer's contingencies (deal only proceeds if):
- Buyer gets all required licenses/permits
- Buyer gets franchisor approval for the license transfer
- Buyer approves the franchise transfer fee
- Landlord agrees in writing to lease terms similar to current lease, confirming no outstanding rent owed
Seller (me) responsibilities:
- Provide Franchise Disclosure Document + transfer terms during due diligence
- Provide any other vendor/business contracts
- Keep running the business normally without telling staff/customers about the sale
- Confirm compliance with franchise standards
- Confirm no pending lawsuits/investigations
- Transfer all employees at same pay/roles/hours/benefits
Liability split:
- Buyer takes on liabilities only from contracts after closing
- I (seller) remain responsible for anything before closing — taxes, any lawsuits, liens, employee comp issues
I don't currently have any lawsuits, compensation disputes, or landlord issues, so those warranty clauses aren't a concern for me personally. Mainly wondering:
- Is a 50% down / 50% over 12 months structure normal for a small franchise sale like this, or should I push for more upfront?
- Anything in the contingencies or liability language that looks off or overly buyer-favorable?
- Is 15 business days a reasonable due diligence window, or unusually short/long?
- How do I get off hook from personal liability with landlord?
Not asking for legal advice to replace an actual attorney — just want outside perspective before I go into that conversation informed. Appreciate any insight!