Franchise Liquidation

Franchise liquidation refers to the process of closing down a franchise business and selling off its assets to pay debts. This often occurs when a franchise is no longer profitable or the franchisor has ended the relationship. During liquidation, the franchise owner sells inventory, equipment, and other assets, while also settling outstanding liabilities. The goal is to maximize the value of remaining assets to meet financial obligations to creditors. Once the liquidation is complete, the franchise ceases to operate, and the former owner typically no longer has any claim to the brand or its rights.