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 the Watch Desk verdict 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.