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Welcome to the ACCC > For businesses > Industry codes of conduct > Franchising Code > Frequently asked questions > 20. Does a franchisee need the franchisor’s consent to transfer a franchise?

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.

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