Industry Guide
Franchises
Information Memorandums for Franchise Businesses
Selling a franchise requires presenting both the business performance and the franchise relationship. Buyers need to understand the agreement terms, royalty obligations, territory exclusivity, head office support systems, and the conditions for transfer approval. MemorandumMaker's franchise prompts address all of this systematically.
Why a generic IM template isn't enough for Franchises
Franchise buyers often have experience with the brand. A strong IM reinforces what they already know about the system while demonstrating this specific location's performance against network benchmarks. That context is what justifies the asking price.
Industry-specific sections included in every Franchises IM
Franchise Agreement
Franchisor name, franchise agreement term, commencement date, expiry, renewal options, and any conditions on renewal.
Royalties & Fees
Royalty percentage, marketing levy, technology fees, minimum purchase obligations, and any other ongoing franchisor fees.
Territory & Exclusivity
Exclusive territory description, any encroachments, online sales rights, and territory protection provisions.
Transferability
Transfer approval conditions, head office fee on transfer, training requirements for new owner, and any right of first refusal.
Questions Franchises buyers will ask — that your IM should answer
MemorandumMaker's AI is trained to proactively address these questions using the data you provide in the form — so buyers get answers before they have to ask.
- What are the remaining franchise term and renewal options?
- What is the total cost of royalties and fees as a percentage of revenue?
- Is the territory exclusive and what are the boundary definitions?
- What are the transfer approval conditions and head office fees on sale?
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