Can I buy a carrier-branded wireless store in Canada?

A carrier’s name on the sign does not tell you who owns the store. Some are run by the carrier. Others are run by independent dealers who sell for the carrier under an agreement. You can only buy the second kind, and what you are buying needs to be clear before you spend money on advisers. Start with these questions.

Carrier-run or dealer-run

Ask the seller directly who the legal owner of the business is, and who employs the staff. Ask for the corporate name behind the store and for the dealer agreement. If the carrier runs the store, ask the seller what, if anything, is actually for sale. A listing that is unclear on this point deserves a plain question before anything else.

You buy the dealer’s business, not the brand

The brand belongs to the carrier. What the seller can sell is the dealer business: the lease, the fixtures, the staff, the customer relationships and whatever rights the dealer agreement gives. Whether those rights pass to a buyer, and on what terms, is a question for your lawyer to read in the agreement. Do not assume that the signage, the plan offerings or the commissions come along.

The carrier’s approval comes first

Dealer agreements vary, so read the agreement to see whether the carrier must approve a new owner. Find out early what the carrier will look at, how long it takes and whether it can say no. Ask your lawyer how the purchase agreement should deal with that approval.

What to ask the seller and the carrier

• Who owns the business and holds the dealer agreement today?
• What does the carrier require of a new owner, and in what order?
• Which stock, displays and signage belong to the store, and which to the carrier?
• Can the carrier confirm, in writing, that the store is in good standing?