Question 1

Why are franchise resales usually 20–40% below build cost?

Accepted Answer

Existing units carry proven cash flow, established staff, and operating history — but buyers discount the unknown remaining lease, FDD-renewal, or franchise-agreement risks. Build cost assumes all-new ramp-up risk; resale pricing reflects real-world data.

Question 2

How does the commission work?

Accepted Answer

Seller pays 8%–12% of the gross sale price on closing. No retainer, no upfront fee. The fee is paid at close from the sale proceeds.

Question 3

Are listings advisor-reviewed?

Accepted Answer

Yes. Every listing is reviewed by a CFEG advisor before publication — financials, transfer provisions in the FDD, and remaining lease are surfaced.

Existing franchise units — often 20–40% below build cost.