Buy/Sell a Business links:
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Buying a Franchise
Answers by Jeffrey S. Lowe B.Comm., LL.B., Vancouver Business-Immigration Lawyer
In this case, you will likely have to get the consent of several parties.
Whether the mall's owners, being the seller's landlords, accept you as a tenant is governed by the existing lease.
An assignment places you in the place of the seller in the lease. If you're buying shares, the lease may deem this change in control of the company as an assignment of lease. In an asset sale, the seller must formally assign the lease to you.
The landlords may accept you in the seller's place, or terminate the existing lease and enter into a new lease with you. They may demand payment for their consent or a guarantee from the seller for the rest of the lease payments owing. The landlords may also require information from you to see if they want to have you as a new tenant. Depending on the lease, they may withhold their consent if they have a good reason.
This sale will likely also need to be approved by the franchisor. Many franchisors have strict rules about whom they will accept as a franchisee. The franchisor may require that you enter into certain agreements with it or provide certain information.
If the seller is also transferring a liquor license, you may
have to provide a criminal background check and get government
2. What do I need to check before buying a small business?
There are a number of searches you should do, such as:
A lawyer can help you search these government and court records
to ensure the seller owns the assets it claims to own, and doesn't
owe any debts for which you could be liable.
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Last updated: September 22, 1999
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