How can a franchisee close their business?
I'm looking to set up an independent shawarma restaurant. I found a pita franchise for sale. I like it because the leasehold improvements are done and the equipment is in place.
The thing is, I don't want to have a franchise, I want my own independent business. Can the franchisee simply close the franchise and get the landlord to reassign the lease to me? How does that work?
- DEBSLv 71 month agoFavourite answer
You'd have to look at the franchise agreement. Most are very clear that the franchise owner cannot open a similar business at the location for a certain amount of time. If the existing franchise owner were to sell you just the equipment and leasehold improvements, that *might* be different.
- JayLv 61 month ago
No. You cannot. You will have to open up your OWN Shawarma (YUMMMM!!!) restaurant.
Go to the Fiverr site and get a business plan for a restaurant. (Probably $20 or less for a basic plan)USE that business plan. Rent a place. It can even be next to the franchise..(because you will be using PITA). Sell your delicious Shawarma.
Now, you realize, I'm going to have to drive 10 blocks to my closest shawrama restaurant because now you made me so hungry and nothing is better than good Shawrama!
- Anonymous1 month ago
Franchisors have protections so people cant just remove them from the equation after stealing all their proprietary stuff. You are free to start your own but it needs to be all yours, not stolen.
- martinLv 71 month ago
A franchise can be closed, but not at the will of the landlord. The franchise would have the right to remain for the duration of their lease. A lease could be broken, but through negotiations between lessor and lessee. Influencing the landlord could subject you to a lawsuit by the company sponsoring the franchise.