Franchise resale (transfer)

Resales change the diligence job completely. A new unit is a projection to stress-test; a resale has three years of real books to tie out, a seller's stated "owner benefit" number to take apart, and a reason-for-sale to verify. You also inherit the location's reputation, staff, and lease — and usually pay a transfer fee to the franchisor, which must approve the deal.

Far more franchise units change hands by resale each year than open new, and a brand's transfer volume in Item 20 is a market signal in itself: healthy systems see units sell at real multiples; distressed ones see them handed back or sold for the value of the equipment.