Q&A

Question: What is a first right of refusal?

There are two main types of “first right of refusal” used in the Franchising industry. The first is one that prevents a Franchisor opening another franchise within an existing franchised territory without first giving the existing franchisee an option to purchase that franchise. The second is one which requires a Franchisee to offer the franchise to the Franchisor to purchase, should the Franchisee want to sell it.