20. Does a franchisee need the franchisor’s consent to transfer a franchise?
Yes, but this cannot be unreasonably withheld. A franchisee must make a written request to the franchisor to transfer the franchise. Circumstances in which it is reasonable for the franchisor to withhold consent include:
the proposed transferee is unlikely to be able to meet the financial obligations of the franchise agreement
the proposed transferee does not meet a reasonable requirement of the franchise agreement for the transfer of a franchise
agreement to the transfer will have a significantly adverse effect on the franchise system
the proposed transferee does not agree in writing to comply with the obligations of the franchisee under the franchise agreement
the franchisee has not paid or made reasonable provision to pay an amount owing to the franchisor or
the franchisee has not remedied a breach of the agreement.
The franchisor will be taken to have consented to the transfer if it does not object within 42 days of the written request.