What Documents Do You Need to Sell a Franchise?

Buyers, lenders, brokers, attorneys, and franchisors may all request documents during a franchise resale. Having those documents organized before going to market can make the process more efficient and help buyers take the opportunity seriously.

Financial documents

Prepare recent profit and loss statements, tax returns when available, balance sheets, sales reports, royalty reports, bank statements if appropriate, payroll reports, rent history, and debt schedules. Include clear explanations for any add-backs.

Franchise documents

Gather the franchise agreement, renewal documents, amendments, transfer provisions, franchisor correspondence related to transfer, operations requirements, brand standards notices, and any documents the franchisor says are needed for approval.

Lease and location documents

For location-based franchises, gather the lease, renewal options, landlord contact process, assignment provisions, rent schedule, common area charges, maintenance obligations, and any personal guarantee requirements.

Asset and equipment information

Create an equipment list with major assets, vehicles, computers, fixtures, furniture, signage, inventory, maintenance records, warranties, leases, and loan balances. Buyers need to know what is included in the sale.

Employee and operations information

Prepare a non-confidential employee overview, staffing chart, owner role summary, manager responsibilities, vendor list, technology systems, marketing channels, and transition support plan. Do not disclose sensitive employee or customer information too early.

Listing and marketing documents

You may also need a confidential business summary, public listing description, photos, headline, buyer qualification notes, and nondisclosure agreement process. See How to Write a Franchise Resale Listing.

This article is general educational content for franchise resale buyers and sellers. It is not legal, tax, valuation, lending, or financial advice. Buyers and sellers should verify all information independently and consult qualified advisors before making decisions.