A smart franchisor must control the strength of the franchise organization in team. Therefore when a transfer is to occur from one franchisee to one another the franchisor must provide guidelines, stipulations and if necessary restrictions to the right to transfer.

In our franchise company we had considered this at length and below is a clause which I had inserted into every franchise agreement;

2.7 Transfer Restrictions

If at any time any legal restrictions shall be imposed upon the purchase of U.S. currency or the transfer to or credit of a non-resident corporation with payments in such currency, Franchisee shall notify Franchisor immediately. Franchisee shall use its best efforts to obtain any consents or authorizations which may be necessary to effect payment in U.S. currency. If Franchisee, despite its best efforts, is unable to effect payment in U.S. currency, Franchisor may direct Franchisee to make payment to Franchisor in such other currency and in such other territory or jurisdictions as Franchisor may select. Franchisor may (to the extent permissible by law) require Franchisee to make such payments to a separate account for the exclusive and sole use and benefit of Franchisor and provide Franchisor with evidence of such payments. Franchisor