Sell Your Franchise Business in Melbourne and Victoria

By Michael White, Director and licensed estate agent · Updated October 2026

Selling a franchise is different from selling an independent business. You own the business, but the brand, the system and often the premises belong to someone else, so the franchisor has a say in who buys it and on what terms. A good franchise resale suits many buyers: they get a proven system, an established customer base and trading figures they can check, without the risk of a new store. Vic Brokers sells franchise resales across Melbourne and regional Victoria, including food, retail and service franchises, and we work with the franchisor from the start so their approval doesn't hold up the sale.

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Who buys franchise resales

Buyers include first-time business owners who want the support of a system, existing franchisees adding another store in the same network, and people moving across from a different brand. Many have already spoken to the franchisor before they contact us, and the franchisor will assess them too.

What buyers look for

Sales and profit after royalties. Two to three years of figures, showing what's left once royalties and marketing levies are paid.
Time left on the franchise agreement. How many years remain, whether there is a right to a further term, and what conditions come with it.
The lease. Years remaining, options and rent, and who holds it. In many systems the franchisor or an associate holds the head lease and sublets to the franchisee.
Refurbishment due. Whether a refit, new equipment or a rebrand is coming up under the agreement or the lease, and roughly what it will cost.
Territory. What area the store has, whether it's exclusive, and whether the franchisor can open another outlet or sell online nearby.
The network. How the brand is performing, the franchisor's support, and whether other stores in the system are for sale.

What affects the value

Franchise resales are usually valued on adjusted net profit: the profit a working owner would earn after royalties, marketing levies, rent and wages, with one-off and personal costs added back. Stock is normally added at value (SAV) at settlement. Two businesses with the same sales can be worth very different amounts, because the franchise costs come out before the profit a buyer is paying for. Where a store lands in its range depends on:

Royalties and levies. Royalties and marketing fund contributions are often a percentage of sales, so they grow as the business grows. Buyers look at profit after them, not before.
Remaining term. A buyer is paying for the right to trade under the brand. Fewer years left on the agreement, with no clear right to renew, lowers the price.
Upcoming capital costs. A required refit or rebrand within a few years will be taken off what a buyer will pay.
Lease security. A long lease or sublease at a fair rent supports the price.
Owner reliance. A store run by a trained manager and team is worth more than one that relies on the owner every shift.

The Australian Competition and Consumer Commission (ACCC) notes that what a franchisee is really selling is the right to operate under a brand, so a resale may not reach what the owner feels it's worth. That's why an honest appraisal before you list matters. Our guide to how business valuations work in Victoria explains adjusted net profit in more detail.

Franchisor approval and the Franchising Code

The Franchising Code of Conduct sets out how a transfer works. A new version of the Code started on 1 April 2025, with some rules applying from 1 November 2025. According to the ACCC's guidance:

You must ask for consent in writing. A franchisee who wants to sell during the term must ask the franchisor's consent in writing. The sale may be a transfer of your agreement, or the franchisor may require the buyer to sign a new agreement for the rest of your term.
Consent can't be unreasonably withheld. Reasonable grounds to refuse include the buyer not meeting the franchisor's selection criteria, an unremedied breach of the agreement, or money owed to the franchisor.
The 42-day rule. If the franchisor hasn't refused in writing within 42 days of your request (or of receiving the last information it asked for), you can assume consent.
Conditions are common. The agreement and the consent may require you to pay an assignment or transfer fee to the franchisor and fix any defects at the premises. Most franchisors also require the buyer to complete their training before taking over.
The buyer has a cooling-off period after buying from an existing franchisee.
Significant capital expenditure must be disclosed. Under the new Code, a required refit, rebrand or major equipment upgrade during the term must be disclosed and discussed with the incoming franchisee.

Approval, training and any refit are the steps that set the settlement date, so we plan them with the franchisor as soon as a buyer is committed. This page is general information, not legal advice; your solicitor should review your agreement before you sell.

Things to prepare before selling

Profit and loss statements and tax returns for the last two to three years, plus recent BAS statements
Weekly or monthly sales reports from the franchise system
Your franchise agreement, any renewal terms and the franchisor's transfer requirements
The lease or sublease and any options
Any notice of an upcoming refit, rebrand or equipment upgrade
A list of equipment and your staff roster: roles and hours (no names needed)

If you're thinking of selling in the next year, our 12-month preparation plan sets out what to do and when. For a franchise, it's also worth checking early how many years are left on your agreement.

How we keep the sale confidential

Staff, customers and other franchisees hearing too early can unsettle the business. We advertise without naming your store and only share its identity and figures with buyers who have signed a confidentiality agreement and been screened. Read how we protect your confidentiality.

Frequently asked questions

Do I need the franchisor's permission to sell my franchise?

Yes. You must ask the franchisor's consent in writing, and the buyer usually has to meet the franchisor's selection criteria. Under the Franchising Code, a franchisor can't unreasonably withhold consent.

How long does the franchisor have to approve a buyer?

Under the Franchising Code, if the franchisor hasn't refused in writing within 42 days of your request, or of receiving the last information it asked for, you can assume consent. Many franchisors respond sooner.

How is a franchise resale valued?

Mainly on adjusted net profit after royalties, marketing levies, rent and wages, with stock usually added at value at settlement. The time left on the franchise agreement, the lease and any refit coming up all move the price.

What if my franchise agreement is close to ending?

A short remaining term usually lowers the price, because the buyer is paying for the right to trade under the brand. Talk to your franchisor about renewal before you list, or ask whether the buyer can be offered a new agreement.

How long does it take to sell a franchise?

Most businesses we sell receive an acceptable offer within 2 to 6 months. Franchisor approval, buyer training and any refit can add time before settlement, so we start them as soon as a buyer is committed.

Thinking of selling?

Start with a free, confidential appraisal, or read how we sell your business, from appraisal to settlement.