Usually, yes. Most franchise agreements say the franchisor must approve anyone buying the franchise, and there's often a transfer fee. Build both into your timetable and your costs.
What approval usually involves
- Vetting you as the buyer, often in the same way as a new franchisee: your background, finances and fit with the brand.
- Training, which may be required before you take over.
- The franchisor's right of first refusal, in some agreements: the franchisor can choose to buy the business itself.
Transfer fees
Franchisors often charge a fee to cover vetting, training and administration. Check the amount in the franchise agreement, and who pays it, you or the seller.
The remaining term
You may take over only the time left on the seller's agreement, rather than a fresh term. Check how long remains and whether it can be renewed. Lenders look at this too: the loan usually needs to fit within the term you'll have.
Why lenders care
A lender will want to see that the franchisor has approved, or is ready to approve, the transfer before releasing funds.
Get advice
Have a franchise-specialist solicitor review the agreement and the transfer terms.
Last reviewed: 8 October 2026