Sell or Buy a Franchise in Illinois

Franchise Business Overview

Illinois has over 30,000 franchise units across hundreds of brands, from fast food to fitness, automotive to home services. Franchise resales offer buyers established brands with proven systems and ongoing support.

Franchise businesses span multiple industries including restaurants, retail, services, and more. These transactions require franchisor approval and compliance with the Franchise Disclosure Document (FDD) requirements.

Franchise Business Valuation

Franchise Type	Multiple Range	Notes
QSR (Fast Food)	2.0x - 3.5x	SDE Multiple
Service Franchises	2.5x - 4.0x	SDE Multiple
Retail Franchises	1.5x - 2.5x	SDE Multiple
Fitness Franchises	2.0x - 3.5x	SDE Multiple

Key Valuation Factors

Brand strength: Franchisor reputation and market position
Territory rights: Exclusive territory and development rights
Remaining term: Years left on franchise agreement
Location quality: Site characteristics and lease terms
Performance: Unit economics vs. system averages

Selling a Franchise in Illinois

Key Selling Considerations

Franchisor notification: Review franchise agreement for sale requirements
Transfer fees: Understand franchisor transfer fees
Buyer approval: Franchisor must approve buyer
Training requirements: Buyer training obligations
Lease assignment: Coordinate with landlord and franchisor

Franchisor Requirements

FDD Compliance: Provide current Franchise Disclosure Document
Transfer Approval: Franchisor approval of buyer
Transfer Fees: Typically $5,000 - $50,000
Agreement Terms: New or assigned franchise agreement

Complete Selling Guide →

Buying a Franchise in Illinois

Key Buying Considerations

FDD review: Thoroughly review Franchise Disclosure Document
Franchisor approval: Meet franchisor qualifications
Training requirements: Understand training obligations
Territory analysis: Evaluate territory rights and competition
Unit economics: Compare to system averages

Due Diligence Checklist

FDD review: Item 19 financial performance, Item 20 franchisee list
Franchisee validation: Contact existing and former franchisees
Financial review: 3 years of tax returns, P&L statements
Lease review: Terms, assignment, and renewal options
Territory analysis: Competition and market potential

Complete Buying Guide →

Popular Franchise Categories

🍔 QSR/Fast Food

Quick service restaurants.

💪 Fitness

Gyms and fitness studios.

🏠 Home Services

Cleaning, repair, and maintenance.

🚗 Automotive

Auto repair and services.

🛍️ Retail

Retail franchise concepts.

📚 Education

Tutoring and learning centers.

Franchise Resources

Regulatory Resources

Industry Organizations

International Franchise Association

Frequently Asked Questions

Yes, virtually all franchise agreements require franchisor approval for any transfer. The franchisor will evaluate the buyer's qualifications, financial capacity, and experience. Some franchisors have right of first refusal to purchase the unit themselves.

Transfer fees typically range from $5,000 to $50,000 depending on the franchise brand. This fee covers the franchisor's costs for buyer evaluation, training, and administrative processing. The fee is usually paid by the buyer but can be negotiated.