Document background
The Franchise Transfer Agreement is a crucial document used when an existing franchisee wishes to exit their franchise business by transferring it to a new operator. This agreement, governed by South African law, must comply with various regulations including the Consumer Protection Act, Companies Act, and competition laws. It details the complete transfer process, including purchase consideration, asset transfer, employee matters, and operational transition requirements. The document is essential for protecting all parties' interests during the transfer process and ensuring continuity of the franchise business. It typically includes comprehensive provisions for due diligence, warranties, and representations, along with specific requirements for training and support during the transition period. The agreement also addresses key aspects such as intellectual property rights, confidentiality obligations, and restraint of trade provisions.
