Can a franchisee relocate the business because of poor sales?

To determine whether your business is able to relocate, you should look at the franchise agreement. Often, franchise agreements will contain either

(i) a prohibition against moving the business to a different location, or
(ii) a general relocation clause that sets out the parameters for moving the business.

If the franchise agreement contains a prohibition against moving the business, or requires you to obtain the franchisor’s consent before doing so, you will need to approach the franchisor with your idea and ask the franchisor to allow your move. If the franchisor says no, there may not be much you can do.  If the franchise agreement contains a relocation clause, the franchisor will probably want to approve the new location to make sure that it is within the territory, meets the franchisor’s criteria for franchise premises and also that it is commercially viable.  The franchisor may want to review the terms of the new lease and make sure that the new premises are fitted out to the then-current brand standards. The franchisor will want you to locate to a new property and re-fit it as quickly as possible to minimise any lost profits.