GLOSSARY

Transfer

A transfer is an existing franchise outlet sold by one franchisee to another — the unit survives, but the owner changes.

Transfers are the most ambiguous line in FDD Item 20. A modest number is healthy — owners retire, estates settle, operators trade. A high transfer rate can mean owners are quietly heading for the exits while the outlet count stays flat.

That's why our Health Index counts transfer churn separately from outright failures: a brand can look stable on total units while its owner base turns over at a troubling pace.