Has anyone transitioned a franchise to private?

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January 12, 2026

by a searcher from Georgetown University in Boulder, CO, USA

I haven't explored franchises in detail, but I'm curious if there are opportunities to acquire a franchise unit that's for sale, but take it off-brand after acquisition? I've found a business for sale in our area that's a franchise, and is in our industry, but I would only consider it if I could drop the franchise brand & terms, and run it independently as #2 of my existing brand.
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Reply by a searcher
from Virginia Polytechnic Institute and State University (Virginia Tech) in Blacksburg, VA, USA
Pretty unlikely the franchisor goes for this. You can refuse to sign their franchise agreement but the seller would be on the hook for all the penalties that would accrue. Also the franchisor often has a ROFR that they may exercise in the unlikely event the seller was onboard with this approach.
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Reply by a professional
from University of Texas at Austin in Austin, TX, USA
Hi, Peter is correct. You'd want to look at the paperwork to see if there is a non-compete and there almost always is. I'm a lawyer in this space. Let me know if I can help.
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