What records should I gather before selling my fast food franchise?

A franchised restaurant sale has two audiences for your paperwork: the buyer and the franchisor. The buyer wants to see how the unit really performs. The franchisor wants to see that you are in good standing and that the new owner can run the brand. Assembling one organized file early means you answer each request once. A generic restaurant file will miss several items, because the brand shapes so much of how your unit operates.

The franchise paperwork

Start with the signed franchise agreement and every amendment, renewal letter and side letter. Add whatever the franchisor has sent about transfers: its approval steps, forms and timelines. Buyers read these closely because they decide what the next owner is allowed to do. If any page is missing, ask the franchisor for a copy now rather than in the middle of a negotiation.

Brand audit and inspection history

Collect recent brand audit reports, food safety inspection results and any notices from the franchisor, along with proof that open items were fixed. A buyer who sees a clear pattern of follow-through feels more at ease than one who finds a surprise later. Our page on how a franchisor inspects your restaurant before a sale explains what to expect.

Sales, royalty and delivery records

Pull royalty and ad-fund statements and reconcile them to your point-of-sale reports and bank deposits. Do the same for delivery app payouts, which often arrive net of the platform’s charges. Where the numbers differ, write a short note explaining why. Your accountant can help you prepare statements a buyer’s accountant will accept.

Premises and equipment

Gather the lease or sublease, any head-lease papers, and landlord correspondence. Add the franchisor’s required equipment list with a note on what you own, what is leased and what is due for replacement. Also keep service records for the kitchen and drive-thru gear, since a buyer will ask about them.