Australia has one of the most active franchise sectors in the world, with over 90,000 franchise units operating across the country. Whether you're looking to exit a franchise you've built, acquire an existing franchisee's business, or explore broker franchise opportunities yourself, understanding how franchise brokers operate is essential.

This guide covers everything: how franchise sales differ from independent business sales, what to expect from franchise resale brokers, the step-by-step process for selling a franchise in Australia, and why many franchise sellers are now choosing online marketplaces over traditional brokers.

What Is a Franchise Broker?

A franchise broker is a specialist intermediary who helps match buyers with franchise opportunities , - either new franchises sold by a franchisor, or existing franchise businesses being resold by franchisees. They have deep knowledge of specific franchise systems, disclosure requirements, and the franchisor approval processes that govern any change of ownership.

Important: many franchise brokers are paid by the franchisor, not the franchisee seller. This can create a conflict of interest. Always clarify who your broker represents and how they're being compensated.

The Two Types of Franchise Sales

1.      New Franchise Sales (Greenfield)

A franchisor sells a new territory or location to a first-time franchisee. This involves the franchisor's internal sales team and, increasingly, franchise sales brokers who recruit new franchisees on the franchisor's behalf. The buyer acquires brand rights and a proven system , - but no established cash flow.

1.      Franchise Resales (Existing Business)

An existing franchisee sells their operating business to a new operator. This is a franchise resale , - the buyer acquires an already-trading business with existing customers, staff, and revenue. Franchise resale brokers specialise in this market, and it's the more complex transaction of the two.

From a seller's perspective, franchise resales come with additional considerations that don't apply to independent businesses:

·       The franchisor must approve the incoming buyer

·       The new franchisee will typically need to complete the franchisor's training programme

·       Any existing royalty obligations, marketing levies, or territory agreements carry over or are renegotiated

·       The sale contract must comply with the Franchising Code of Conduct

·       Transfer fees , - typically 2–5% of the sale price , - are payable to the franchisor

How Franchise Businesses Are Valued

Franchise businesses are valued similarly to independent businesses , - typically on an earnings multiple basis , - with some additional factors specific to the franchise structure.

Value Factor	Impact on Price
Brand premium , - Well-known franchise vs. unknown system	Higher multiple for recognised brands
Territory security , - Exclusive vs. non-exclusive territory	Exclusive territory adds significant value
Remaining franchise term , - Years left on the agreement	Short remaining term reduces value and finance options
Franchisee performance , - Performance vs. system benchmarks	Above-benchmark performance supports higher multiples
Transfer fee , - Franchisor's cut of the sale	Reduces net proceeds; factor in when pricing
Owner vs. manager operated , - Reliance on the franchisee personally	Manager-operated businesses attract higher multiples

Selling Your Franchise: A Step-by-Step Overview

1.      Step 1: Review Your Franchise Agreement

Before doing anything else, review your agreement carefully. Look for:

·       Right of first refusal , - The franchisor may have the right to match any offer before you sell to a third party

·       Transfer fee , - Typically 2–5% of the sale price, paid to the franchisor

·       Approval requirements , - The incoming buyer must be approved

·       Restraint of trade , - Post-sale restrictions on your ability to operate competing businesses

·       Training requirements , - Whether the new owner must complete training before taking over

2.      Step 2: Prepare Your Financials

As with any business sale, clean financials are essential. Include royalty payments and marketing levy costs in your P&L so buyers can see true operating cash flow. Your franchisor may have a standard reporting format , - use it.

3.      Step 3: Choose Your Sale Method

You have several options:

·       Franchise resale brokers who specialise in your specific franchise system

·       General business brokers with franchise transaction experience

·       Online marketplaces like Exity , - direct access to franchise buyers across Australia without broker commissions

Many sellers choose to list on both a marketplace and work through their franchisor's preferred resale process simultaneously to maximise exposure.

4.      Step 4: Obtain Franchisor Approval

The franchisor will typically require the incoming buyer to:

·       Attend an interview and discovery day

·       Complete financial capability assessments

·       Provide character references

·       Successfully complete training before taking over

·       Factor 4–8 weeks into your timeline for franchisor approval. Delays at this stage are common , - build this into your expectations and your buyer's timeline.

5.      Step 5: Structure the Deal

Franchise resales typically involve:

·       Standard business sale terms , - price, settlement date, working capital

·       Lease assignment or new lease (if premises are leased directly by the franchisee)

·       Franchisor's transfer documentation , - a Deed of Novation or a new Franchise Agreement

·       Training and transition period , - you'll typically be required to assist the incoming franchisee during their initial trading period

Broker Franchise Opportunities: Becoming a Broker Yourself

Beyond selling through a franchise broker, many Australians are interested in becoming one , - or in joining a broker franchise network to build their own business advisory practice.

·      Sub Broker Franchise

A sub broker franchise involves working under a licensed master broker or franchisor , - earning commissions on deals introduced while the master holds the licence. Sub broker franchise costs vary significantly by network, from a few thousand dollars to $50,000+. It's a lower-barrier entry point into the broking industry.

·      Mortgage Broker Franchise

A mortgage broker franchise lets you operate under an established brand and aggregator , - such as Mortgage Choice, Loan Market, or similar networks. These provide accreditation, lender panel access, compliance support, and brand recognition in exchange for fees and commission splits. The mortgage choice franchise model is one of the most recognised in Australia.

·      Loan Broker Franchise

A loan broker franchise or business lending broker network lets you arrange commercial and business finance under a branded network's AFSL. These models suit people with finance industry backgrounds looking to build their own book of clients.

·      Estate Agency Franchise

An estate agency franchise involves buying into a real estate brand to operate your own agency under a known name. This is a heavily regulated sector , - operating a real estate agency in Australia requires holding (or employing someone who holds) a real estate licence under state legislation.

Why Franchise Sellers Choose Exity

Exity's marketplace attracts buyers specifically looking for franchise resale opportunities across Australia. By listing on Exity, franchise sellers benefit from:

·       Broad buyer reach , - thousands of active buyers searching nationally

·       Category-specific filters that put your listing in front of buyers searching for franchise businesses in your sector

·       No inflated broker commissions , - keep more of your proceeds

·       Direct communication with qualified buyers from the first enquiry

·       Speed , - marketplace-listed franchises typically attract buyer enquiries weeks ahead of broker-led campaigns

List your franchise on Exity today and reach the buyers who are already searching for your opportunity.

Frequently Asked Questions

·      Do I need a franchise broker to sell my franchise?

No. While specialist franchise resale brokers understand the system-specific nuances, the most important factor is reaching qualified buyers. An online marketplace like Exity provides broader buyer exposure at lower cost than most franchise brokers.

·      How long does it take to sell a franchise in Australia?

Factor in franchisor approval (4–8 weeks), buyer due diligence (2–4 weeks), and settlement. Total timelines vary, but well-marketed franchise resales on platforms like Exity typically complete in 8–16 weeks from listing to settlement.

·      What is a franchise resale broker?

A franchise resale broker specialises in selling existing franchise businesses , - as opposed to new franchise sales (greenfield). They typically have system-specific knowledge and relationships with franchisors, which can accelerate the approval process.

·      How much does it cost to become a sub broker?

Sub broker franchise costs vary significantly by network , - from a few thousand dollars for a basic arrangement to $50,000+ for premium networks with established brand presence. Always review the sub broker agreement carefully, including commission structures and volume requirements.

·      What is the Franchising Code of Conduct?

The Franchising Code of Conduct is a mandatory industry code under Australian consumer law that governs the conduct of franchisors and franchisees. It covers disclosure requirements, dispute resolution, and the terms of franchise agreements , - including transfer and resale provisions.