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Starting a franchise · Takeover

Taking over a franchise: how to approach a takeover

From the first search to handing over the keys: what is involved when you buy an existing location.

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By Gijs Bodenstaff · Updated:

Taking over a franchise means buying an existing location from a franchisee who is stepping down, and operating the franchise system in their place. The franchisor has to approve the new owner, so you are selling yourself to two parties. The advantage: you buy turnover that already exists. An average franchise location in the Netherlands turned over €1.45 million in 2025 (calculated from NFV franchise statistics).

How exactly does a franchise takeover work?

In a takeover you buy the business of the current franchisee: often the fixtures, stock, the right to lease the premises and an amount for goodwill. The franchise agreement itself belongs to the franchisor. You therefore sign a new agreement with them, or take over the existing one if they agree. Ask which option applies, because it determines the term and the conditions that apply to you.

If you sign a franchise agreement, the Dutch Franchise Act applies. The franchisor must inform you in advance about, among other things, fees and required investments (Articles 7:913 and 7:916 of the Dutch Civil Code), followed by a four-week standstill period. Have your contract reviewed by a franchise lawyer; this is not legal advice.

A takeover is one of the routes in the step-by-step plan for starting a franchise. Still exploring? Then first read what a franchise is.

Is taking over a franchise better than opening a new location?

Both can work out well. The difference lies in risk and price: in a takeover you pay for proven turnover, with a new location you pay with time and uncertainty.

Taking over a franchise or opening a new location: the differences
PointTakeoverNew location
Turnover at the startAlready in placeYou have to build it
Purchase priceIncludes goodwillNo goodwill
StaffOften taken overYou recruit them yourself
LocationFixedChosen with the franchisor
Figures for your lenderHistorical annual accountsOnly a forecast
RiskHidden problemsSlow start-up

Where can you find franchises for sale?

Locations that are for sale are not always advertised publicly. The best starting point is the franchisor: they know which franchisees want to step down and are often keen to help find a successor. So first decide which franchise brands suit you. You will find an overview by sector under franchise brands in the Netherlands.

At a fair you can also talk to franchisors directly. See, for example, the report from the franchise fair in Gorinchem. Ask there specifically about locations looking for a successor.

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Which steps do you go through in a franchise takeover?

A takeover roughly follows seven steps. The order can differ per franchise brand, but the franchisor's approval is always part of it.

Step-by-step plan for taking over a franchise
StepWhat you doWatch out for
1. OrientationChoose a franchise brand and regionDoes the brand suit you?
2. IntroductionMeeting with franchisor and sellerAsk about the selection procedure
3. Letter of intentOutline agreementsInclude conditions precedent
4. Due diligenceCheck figures, contracts and staffHave an adviser look along
5. ApprovalThe franchisor assesses youNo approval, no takeover
6. FinancingFinalise loan and own contributionPlan in the standstill period
7. HandoverSign contracts, receive the keysDraw up an onboarding plan
Diagram of the seven steps to take over a franchise, from orientation and due diligence to franchisor approval and handover
The seven steps of a franchise takeover, with the franchisor's approval as a fixed gate.

What role does the franchisor play in a takeover?

The franchisor has to approve you as the new franchisee. They assess you much like a starter: motivation, entrepreneurship and financial footing. You often also follow the same training as new franchisees. See the meeting as a two-way test and ask how the brand supports the location, for example with support for franchisees in local marketing.

What do you check when a franchise is for sale?

Due diligence is your chance to avoid surprises. Look not only at the figures, but also at the contracts and the online reputation of the location.

Due diligence checklist for a franchise takeover
AreaWhat you request or check
Annual accountsTurnover and margin over several years
Franchise agreementRemaining term and conditions
LeaseTerm, rent and transferability
StaffContracts and existing arrangements
Fixtures and equipmentCondition and any replacement investments
Online reputationReviews, responses and Google Business Profile

Why online reputation matters

In our Local SEO Benchmark Franchise Chains 2026, only 6 of the 100 chains responded to reviews within 24 hours. A location with many unanswered reviews will cost you time to put right after the takeover. Also read the cost of not responding to reviews.

How do you set the price in a franchise takeover?

There is no fixed formula for the price of a franchise location. Buyer and seller negotiate, usually based on the returns of recent years, the remaining term of the agreement, the condition of the fixtures and the goodwill. Have an adviser look along and ask the franchisor whether they use guidelines.

Part of the price can be paid through an earn-out: you then pay later, depending on the results. For the rest, look at financing for new franchisees, such as Qredits or a bank loan with a BMKB guarantee.

What are the pitfalls in a franchise takeover?

Most problems are caused by haste. These are the pitfalls buyers most often overlook.

Pitfalls in a franchise takeover
PitfallHow to avoid it
Short remaining termAsk about renewal in advance
Overdue maintenanceHave fixtures and premises inspected
Staff who leaveTalk to key employees beforehand
Overly optimistic figuresCompare with other locations
Upcoming changes to the franchise systemAsk about plans and investments

Frequently asked questions about taking over a franchise

Can a franchisor refuse a takeover?
Yes, in practice the franchisor must agree to the new franchisee. They assess whether you fit the franchise brand and whether you are financially strong enough. Read what the seller's franchise agreement says about transfer and have it reviewed by a franchise lawyer.
Do I take over the seller's franchise agreement?
It varies. Sometimes you take over the existing agreement, more often you sign a new agreement with the franchisor. Ask which option applies, because it determines the term and conditions. With a new agreement you receive information in advance and a four-week standstill period applies.
What is goodwill when a franchise is for sale?
Goodwill is the part of the purchase price you pay above the value of assets such as fixtures and stock. You pay it for the existing customers, turnover and reputation of the location. The amount of goodwill is negotiable and depends heavily on the figures.
How long does a franchise takeover take on average?
There are no reliable averages. The duration depends on due diligence, the franchisor's selection process and your financing. In any case, allow for the four-week standstill period under the Dutch Franchise Act if you sign a new franchise agreement. Then plan time for onboarding as well.
Do I take over the staff in a franchise takeover?
That depends on how the takeover is structured. If you buy the business, staff often transfer with it. Have an adviser look into this carefully beforehand, because it determines your wage costs. Also talk to key employees before the handover, so you know who is staying.
Do I also have to follow training if I take over?
Often, yes. Many franchisors have buyers follow the same training programme as new franchisees, so they know how the franchise system works. Ask during the introduction how long the programme takes, whether you can complete it before the handover and whether there are costs involved.
How do I finance the takeover of a franchise?
With a combination of your own contribution and loans, just as with a new location. Think of a Qredits credit or a bank loan with a BMKB guarantee. The advantage of a takeover is that your lender can assess historical annual accounts instead of just a forecast.
What goes into a letter of intent for a takeover?
A letter of intent records the outline agreements: an indicative price, timeline and conditions. Think of conditions for financing, satisfactory due diligence and approval by the franchisor. This lets you still pull out if something disappoints. Have the wording checked by a lawyer.
Why would a franchisee want to sell their location?
It could be anything: retirement, a career change, personal circumstances or disappointing results. Always ask about it openly and check the story during due diligence. Also talk to other franchisees in the franchise system, so you can hear whether there is a pattern behind it.
Can I take over several franchise locations at once?
Yes, if the franchisor allows it and your financing can handle it. Some franchise brands deliberately work with operators who run several locations. Do carry out thorough due diligence for each location, because every site has its own figures, its own staff and its own lease.

Sources

Portrait of Gijs Bodenstaff

Gijs Bodenstaff
Franchise marketer, local SEO and GEO specialist, author

Considering a takeover? Take the checklists above to your first meeting with the franchisor.