Clarion is often used within Choice Hotels Canada's portfolio to reposition a full-service property — meeting space, banquet facilities, a full restaurant — into a leaner, focused-service model, rather than simply swapping one flag for another. That repositioning angle means a Clarion resale can involve more moving pieces than a straightforward brand transfer: what happens to existing banquet and meeting-space bookings, staffing levels sized for full service, and — because these properties often already carry a licensed lounge or restaurant from their earlier full-service life — an AGCO transfer is a live consideration more often than at Choice's limited-service banners.
Clarion (Choice Hotels Canada) resales follow the franchisor's own approval process on top of the usual purchase mechanics — here's how the two run together.
Getting approved
The offer covers the real estate and the Clarion franchise licence together, conditioned on Choice Hotels Canada approving the transfer and, where relevant, the repositioning plan.
2–5 weeks†Choice Hotels Canada reviews the incoming operator and assesses the property against current brand standards, including how any full-service features are being repositioned to a focused-service model.
4–9 weeks†Mortgage financing, title, survey, and environmental review for the real property proceed alongside the brand review.
4–8 weeks, in parallel†Getting to closing
Where the property carries a licensed lounge or restaurant — common given many Clarion properties' full-service history — an AGCO transfer proceeds on its own timeline.
4–8 weeks, if applicable†The incoming owner signs a new, current-form licence agreement with Choice Hotels Canada, incorporating any required property upgrades or repositioning terms.
negotiated alongside brand approval†Real property, business assets, and the licence agreement close together, with a defined timeline for any required upgrades and staffing transition after taking over.
1 day, plus an upgrade-completion tail†Listed on the CFA's Look For A Franchise directory as an active Choice Hotels Canada Inc. franchise brand, in business since the mid-1990s, positioned for owners repositioning a full-service property to a focused-service model.
Included within Choice Hotels Canada's national network, which spans Ontario alongside other provinces.
This is the first real decision in a Clarion (Choice Hotels Canada) resale — and it changes what you're buying, what you're taking on, and how the franchise agreement moves.
| Question | Asset purchase | Share purchase |
|---|---|---|
| What you buy | The real property (if included), the hotel's operating assets, and the benefit of the Clarion licence agreement, subject to Choice's consent. | The shares of the corporation holding the property and the licence agreement — everything it owns and owes. |
| Seller's liabilities | Generally stay behind with the seller, apart from anything specifically assumed. | Generally come with the company, known and unknown, including any mortgage obligations. |
| Master licence consent & repositioning review | Required from Choice Hotels Canada, often paired with a review of how the property is being repositioned from full-service toward a focused-service model. | Required for the change of control, with the same repositioning review still applying. |
| Liquor licence | Common at this brand tier given many properties' full-service history — an existing AGCO licence typically needs its own transfer process. | The licence itself doesn't automatically transfer with a share sale, but AGCO's change-in-control notice requirements still apply. |
| Staff (ESA) | Employment Standards Act continuity rules apply to how hotel staff carry over — a repositioning can mean the incoming owner is right-sizing a staffing footprint originally built for full service. | Employment generally continues uninterrupted — the employer doesn't change, though a repositioning plan may still prompt role changes. |
| Tax angle | Buyer generally gets a stepped-up cost base on the real property and business assets purchased; HST self-assessment applies to the real property transfer. | Seller may access the lifetime capital gains exemption on qualifying shares; the property's cost base carries over. |
The real property (if included), the hotel's operating assets, and the benefit of the Clarion licence agreement, subject to Choice's consent.
The shares of the corporation holding the property and the licence agreement — everything it owns and owes.
Generally stay behind with the seller, apart from anything specifically assumed.
Generally come with the company, known and unknown, including any mortgage obligations.
Required from Choice Hotels Canada, often paired with a review of how the property is being repositioned from full-service toward a focused-service model.
Required for the change of control, with the same repositioning review still applying.
Common at this brand tier given many properties' full-service history — an existing AGCO licence typically needs its own transfer process.
The licence itself doesn't automatically transfer with a share sale, but AGCO's change-in-control notice requirements still apply.
Employment Standards Act continuity rules apply to how hotel staff carry over — a repositioning can mean the incoming owner is right-sizing a staffing footprint originally built for full service.
Employment generally continues uninterrupted — the employer doesn't change, though a repositioning plan may still prompt role changes.
Buyer generally gets a stepped-up cost base on the real property and business assets purchased; HST self-assessment applies to the real property transfer.
Seller may access the lifetime capital gains exemption on qualifying shares; the property's cost base carries over.
We tell you which structure fits — before you sign anything.
No open-ended hourly surprises — the cost is confirmed in writing before any work begins.
| Type of work | Fee | How it's confirmed |
|---|---|---|
| Straightforward purchase or sale | Starting from $3,388.87 Our charges · taxes included | Confirmed in writing once we see the agreement. |
| Larger or more complex deal | Quoted to scope | Short call → fixed written quote before any work begins. |
| Searches, filings & third-party fees | At cost | Itemized on your invoice, not marked up. |
A single, already-repositioned Clarion property changing hands, with the real estate, licence agreement, and an existing liquor licence moving together in one transaction.
Start my file →A property still mid-repositioning from full-service to focused-service, with banquet contracts, an AGCO transfer, and staffing right-sizing all needing to be resolved before terms are final.
Book a consultation →Not sure which you are? That's our job to figure out, not yours. As a rough guide, most deals under a couple of million dollars are the first kind — above that, you're usually in Mergers & Acquisitions territory.
It typically means the property is stepping down from a fuller-service model — trimming meeting/banquet operations and food & beverage staffing to a more focused-service footprint — while the physical building and, often, an existing liquor licence carry forward. We review the specific repositioning plan alongside the standard brand and real estate approvals, since it usually adds moving pieces beyond a simple flag swap.
Frequently, yes — many Clarion properties carry a licensed lounge or restaurant left over from an earlier full-service life, which is more common at this brand than at Choice's limited-service banners. That licence still needs its own AGCO transfer process; it doesn't move automatically with the sale.
That's addressed in the purchase agreement — whether the buyer assumes existing bookings, how deposits already collected are handled, and staffing continuity for the events team are all deal points we work through as part of the repositioning review.
The consent, licence-agreement, and closing mechanics are shared across Choice's Canadian brand family, but a Clarion resale more often involves an actual repositioning of the property's service model, which adds diligence work around banquet contracts, existing liquor licensing, and staffing that a straightforward limited-service flag transfer doesn't usually require.
It can factor into the numbers, though not the basic structure — repositioning work is typically budgeted alongside the standard asset-sale financing or share-sale lender consent, so a buyer planning that shift should build the anticipated capital cost into financing discussions rather than treating it as separate from the mortgage question.
Related
Where we close franchise resale deals
Treadstone Law is an independent law firm. We act for buyers and sellers of franchise businesses. We are not affiliated with, endorsed by, or retained by Clarion (Choice Hotels Canada) or its franchisor.
Tell us about your Clarion (Choice Hotels Canada) resale — we'll point you the right way and confirm the cost in writing before any work begins.