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Franchises · SDE 1.5×–2.5×

Sell Your Franchise in BC

Franchise resales are one of the more complex exits in the SMB market — the franchisor must approve the buyer, the Franchise Disclosure Document creates disclosure obligations, and the buyer pool is narrower than for independent businesses. Getting the sequence right matters as much as finding the right buyer.

Deal Economics

SDE Range$80,000 – $400,000 (single unit)
Typical Multiple1.5× – 2.5× SDE
Multi-Unit Premium+0.5×–1× for 3+ units under one roof
Franchisor ApprovalRequired — timeline 30–90 days

What Moves the Multiple Up

  • Strong franchisee performance scores from the franchisor
  • Prime location lease with renewal option
  • Multi-unit operator — more units means stronger management layer
  • Trained manager already in place (not owner-operator)
  • No outstanding franchise compliance issues or unresolved disputes

Who Buys Franchise Resales

New-to-Canada Entrepreneurs

Buyers who want the reduced risk of an established brand and proven systems — especially attractive to immigrant investors who value a turnkey operation.

Existing Franchisees Expanding

Operators within the same or complementary franchise system looking to add territory or units.

First-Time Business Buyers

Buyers who prefer the support infrastructure of a franchisor over the uncertainty of an independent business.

Franchisor Right of First Refusal

Most franchise agreements include a ROFR — the franchisor can match any offer before the sale proceeds to the third-party buyer. Build this timeline into your exit plan.

Due Diligence Checklist

Franchise Agreement with remaining term and renewal provisions
Current Franchise Disclosure Document (FDD) — confirm disclosure obligations to buyer
3 years of P&Ls and the most recent period's royalty statements
Franchisor performance scorecard or audit results
Lease agreement and landlord/franchisor assignability confirmation
Confirm franchisor approval process timeline and requirements

Our Fees

$7,500 non-refundable engagement fee, credited at close. Reverse Lehman — minimum $25,000.

10%

First $1M

8%

$1M – $2M

6%

$2M – $3M

4%

Above $3M

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