If you decide to sell your franchise area, the following process should be followed to ensure a smooth transition for both you and the purchaser.

Sale Process

1. Notify the Support Office that you wish to sell your franchise area. We will discuss the sale process and explain the steps involved.
2. Franchise Term Assessment. The Support Office will advise whether the franchisor is prepared to issue a new franchise term to an incoming purchaser or whether only the balance of your existing franchise term may be transferred.
3. Determine an Asking Price. Refer to the section on Valuing Your Franchise. This outlines the same valuation methodology that the Support Office will discuss with prospective purchasers.

4. Allocate the Sale Price. Determine the value attributable to:

   • Plant and equipment (machines and other assets)
   • Stock
   • Goodwill

   Physical assets should generally be valued at less than their current replacement cost.

5. Advertise Your Franchise Area. You are responsible for marketing your franchise locally or through other suitable channels.

6. Protect Confidential Information. Before discussing any confidential information, require the prospective purchaser to complete and sign a Confidentiality (Non-Disclosure) Agreement. A copy of the signed agreement must also be forwarded to the Support Office before you disclose information such as:

   • Financial performance
   • Machine locations
   • Number of machines
   • Commission arrangements
   • Operating procedures
   • Customer or site information

   Remember, you do not know who the enquiry has come from. It may be a genuine purchaser—or it may be a competitor seeking commercially sensitive information.

7. Initial Discussion with the Support Office. If the prospective purchaser remains interested after reviewing the available information, ask them to contact the Support Office for an initial discussion about the Kiwikrane franchise system.
8. Show the Business. Meet with the prospective purchaser and, where appropriate, show them your operation, machine locations, and day-to-day business activities.
9. Due Diligence. If both parties wish to proceed, advise the Support Office so the franchisor can begin its due diligence process with the prospective purchaser.
10. Franchise Documentation. The franchisor will provide the prospective purchaser with the relevant franchise documentation for review.
11. Sale and Handover. Subject to both parties proceeding, the Support Office will assist in coordinating the transition by providing guidance on the Sale and Purchase Agreement and handover arrangements.
12. New Franchise Agreement. Once all conditions have been satisfied, the franchisor will issue a new Franchise Agreement to the incoming franchisee.

Role of the Support Office

The Support Office acts as an independent facilitator throughout the sale process. We do not negotiate the sale price or act as an intermediary between the buyer and seller.

Our role is to provide both parties with the same objective information regarding how Kiwikrane values franchise businesses and to ensure the incoming purchaser understands the franchise system and the obligations of ownership.

We recognise that an outgoing franchisee naturally wishes to achieve the highest possible sale price, while an incoming purchaser is seeking the best value. The final purchase price is therefore negotiated directly between the buyer and seller.