What happens if the franchisor wants to renegotiate the whole agreement instead of just approving a transfer?

Franchisors sometimes do treat a transfer as an opportunity to update the franchise agreement to their current standard template, and whether this is something they can insist on, versus simply propose, again comes down to your existing agreement's own transfer provisions. Some agreements specifically require a new franchisee to sign the franchisor's then-current form of agreement as a condition of an approved transfer, which effectively means renegotiation, or at least a fresh signature on updated terms, is built into the process from the start.

Where the existing agreement doesn't clearly require this, a franchisor pushing for a wholesale renegotiation is making a request rather than exercising a contractual right, and your buyer isn't necessarily obligated to accept materially different terms just because the franchisor would prefer it — though refusing could also affect whether the franchisor is willing to approve the transfer at all.

Because this can significantly change what your buyer is actually agreeing to compared to what you're selling, review your existing agreement's transfer clause before assuming the current terms simply carry over. A Treadstone business lawyer can clarify what the franchisor can require versus merely request.