What should I check before buying a resale salon franchise?

Buying an existing franchised salon means stepping into someone else’s agreement with the brand. You get a working location, but you also get its commitments. The franchisor may have a say in who takes over, which the agreement will set out, and the seller cannot promise its answer. Start the conversation with the franchisor early and keep the seller’s business and the brand’s terms separate in your notes.

Franchisor approval and the transfer steps

Ask the franchisor, in writing, what the approval process involves: what it will want to know about you, what training you must complete, and what documents you will sign. Ask whether the agreement you inherit is the one in place today or a newer form. Your lawyer should read the agreement and advise on any disclosure paperwork that applies.

How much term remains

A franchise agreement runs for a set period. Find out how long is left and whether it can be renewed, and on what conditions. The remaining term affects your decision, so check it against the agreement with your advisers. Ask whether renewal means signing a new, different agreement.

Remodels, systems and brand standards

Brands update their look, products and booking technology from time to time. Ask what the franchisor has required of this location in the past, and whether any upgrade is due soon. Check the agreement and the purchase terms for who bears the cost of a required remodel or system change. Ask the seller what has been told to them in writing.

Stylists under the brand

The team may have joined because of the brand or because of the owner. Find out who is likely to stay, and read how stylists are kept when a salon sells. If you are weighing a branded salon against an independent one, this comparison may help.