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Franchise Acquisition Escrows: Protecting California Buyers

June 5, 2025
Escrow Accounts for Small Business Owners

Franchise Acquisition Escrows –

When buying a California franchise—whether it’s a fast-food outlet or fitness center—escrow accounts prevent costly surprises. At Secured Trust Escrow, California’s #1 rated escrow provider, we’ve safeguarded over multiple franchise transfers by holding 15-25% of purchase prices until critical conditions are met. For a $500,000 San Diego coffee shop acquisition, our specialized escrow process ensures:

  • Franchisor transfer approval is secured
  • All royalty audits are completed
  • Equipment leases are properly assigned
  • Seller non-compete agreements are executed

Why we’re different: Our team includes former franchise executives who understand complex brand requirements from McDonald’s to Anytime Fitness.

Orange County Smoothie Shop Success (Hypothetical Scenario)

When a first-time buyer acquired a Jamba Juice franchise:

  1. Secured Trust held $85,000 (17% of price)
  2. Discovered undisclosed $18,000 equipment lease
  3. Negotiated seller payment from held funds
  4. Released balance after franchisor training completion

The buyer avoided financial disaster thanks to our protective escrow services.

Your Franchise Acquisition Solution

Trust California’s top escrow provider for:

  • Franchise Disclosure Document (FDD) verification
  • Territory rights confirmation
  • Inventory audits during transition
  • Post-sale training compliance

Free consultation: Contact our franchise escrow specialists to discuss your acquisition.

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