In modern day franchising there are often situations where a franchisee, which is an individual or a franchisee, which is a corporation will wish to sell their rights under the contract to another party. A franchisor has to pay attention to these things to insure that there is no illegal or inadvertent transfer of confidential proprietary information such as secret recipes, operations manuals or marketing methods.

Indeed this stands to be reasonable to wish to monitor it, however it is not nearly as easy as it sounds as many deals, appear to be cut and dry or black and white can quickly become rather convoluted. It is so easy to accidentally allow information to slip your grasps and always difficult to control. Then there is the occasional competitor who will attempt to legally attain your secret information thru owning interests in one of your franchised outlets. How do I know, well it happened to me. So, I added this expanded clause to our franchise agreements to prevent this in the future;

5.2.4 Conditions to Transfer

In connection with any transfer provided for above (which requires Franchisee