Franchisors interested in selling a franchise system—whether in the near future or longer term—should take steps now to maximize its value. In the April 2013 issue of Franchising World magazine, Gray Plant Mooty attorneys Gaylen Knack, Sandy Bodeau, and John Brower highlighted key legal issues for franchisors to consider in preparing a franchise system for a sale. They examined proactive steps the selling franchisor can take that can improve the purchase price paid for the system. These include, among other actions, ensuring the franchise agreements give the franchisor flexibility in responding to dynamic changes in the marketplace, conducting an audit of key intellectual property, and establishing a release program as a defense against future claims. Readers can find the article, Selling the Franchise System: Laying the Legal Groundwork to Optimize Value, at http://www.franchise.org/IFA_NEWS/Selling_the_Franchise_System__Laying_the_Legal_Groundwork_to_Optimize_Value/. Those who wish to learn more can attend the Capital Roundtable on Franchising M&A, which Gray Plant Mooty will sponsor, in New York City on November 14, 2013.
Franchise Mergers & Acquisitions