Asset Purchase Agreement for Franchise | Canada
Sell the assets of a franchise business to a new franchisee with this Asset Purchase Agreement for Canadian franchises.
- The purchaser will purchase the assets of the franchise business, including inventory, parts and any equity the vendor has in the leased equipment.
- The purchaser will assume the responsibilities of a franchisee under the main Franchise Agreement with the franchisor.
- The purchaser is not obligated to assume or perform any obligation of the vendor except for the equipment leases which the purchaser has accepted prior to closing.
- The purchaser will assume the premises lease from the vendor.
- The purchase price is (i) cost less depreciation for inventory for inventory and (ii) actual cost for parts.
- The Asset Purchase Agreement is governed by Canadian laws. It does not contain references to specific provincial franchising laws and regulations and can be modified for use in most provinces and territories of Canada except for Quebec.
Last Updated: 10-May-2021