Franchisor consent to transfer of a franchise

In Lockhart v Holden [2008] QSC 257, Justice Douglas of the Supreme Court of Queensland handed down a judgment where the franchisee challenged the franchisor's refusal to consent to a transfer of its franchise to a third party buyer.

Franchisees intending to sell their franchises will be well advised to familiarise themselves with the franchisor's policies and selection criteria.

Franchisors will also be well advised to document their policies, future plans and selection criteria and apply those objectively and in good faith when considering a franchisee request for consent to transfer of a franchise.