What is a split sale?

Question

What is a split sale? 

Answer

A split sale is a sale of a portion of a franchise business from an existing Franchisee to a prospective Franchisee.  There are 3 different split sale types: 

1. A portion of the vendor franchisee’s territory only;
2. A portion of the vendors franchisee’s territory & a regular client list; or
3. a regular client list only with a granted vacant territory from the Franchisor (clients must be enough to remove the prospective franchisees need to claim PfWG).