TREADSTONE LAW · ONTARIO · DIGITAL LEGAL SERVICES · EST. MMXXI ·TSL
Home/Buying & Selling a Business/Montana's Franchise Resale
№ 01Buying & Selling a Business · Franchise Resale · Ontario

Buying a Montana's franchise

Buying or selling an existing Montana's is a full-service restaurant resale with a real-estate-heavy twist — many locations sit on free-standing pad sites with their own parking, and the patio seating that's part of the brand's identity often needs its own seasonal municipal approval on top of the usual liquor licence, lease, and health-unit steps.

№ 01.1The Resale, End to End

From offer to ownership

Montana's resales follow the franchisor's own approval process on top of the usual purchase mechanics — here's how the two run together.

Getting approved

01

Conditional offer & structure

The offer sets price and structure and should build in the conditions specific to a pad-site restaurant: franchisor consent, landlord or ground-lease consent, and AGCO licence transfer.

1–2 weeks
02

Franchisor application & review

The franchisor reviews the incoming operator and the proposed terms before consenting to the transfer of that specific location.

3–6 weeks
03

Disclosure considerations

An Arthur Wishart Act disclosure document may still be required even where the deal is framed as a private resale — the exemption is read narrowly by Ontario courts, so this gets confirmed early.

assessed early

Getting to closing

04

Lease, licence & patio-permit workstreams

The lease or ground-lease assignment, the AGCO liquor licence transfer, and the patio's municipal permit or licence all move on their own timelines — the patio permit in particular is worth confirming early if the deal is closing near patio season.

often the critical path
05

Training & transfer approval

The franchisor typically requires the incoming owner or a designated manager to complete a training program before or shortly after closing.

2–4 weeks, overlapping other steps
06

Closing

Funds, keys, and signed documents change hands, alongside an inventory count and whatever interim licence mechanism bridges the gap until the AGCO transfer is finalized.

1 day, once conditions are met
Timelines vary by franchisor approval speedWe track every deadline so nothing lapses.
№ 01.2About the System

About the Montana's system

Listed among Recipe Unlimited's franchisable brands on its official franchising page

National BBQ/casual-dining chain with numerous Ontario locations

№ 01.3Deal Structure

Asset sale or share sale?

This is the first real decision in a Montana's resale — and it changes what you're buying, what you're taking on, and how the franchise agreement moves.

QuestionAsset purchaseShare purchase
What you buyThe location's assets — kitchen and bar equipment, the parking lot and patio improvements, inventory, the lease or ground lease, and the franchise agreement's benefit, subject to consent.The shares of the operating company — every location it holds, and everything the company owes.
Franchisor consent & ROFRRequired for the specific location changing hands.Required for the change of control itself, across every location the corporation operates.
The AGCO liquor licenceTransfer application, or a new licence bridged by an interim authorization to keep serving while it's processed.Stays with the corporation, but AGCO must be notified of the ownership change.
The lease or ground leaseNeeds landlord consent to assign — a free-standing pad site's ground lease can carry different terms than an in-line plaza unit.Usually stays in place unless it has its own change-of-control clause.
Patio permit / municipal licenceTypically needs to be reissued or updated in the new operator's name, especially where the patio sits on municipal or shared parking-lot land.Stays tied to the corporation, though the municipality is generally notified of the change.
Tax angleBuyer gets a stepped-up cost base on the assets purchased.Seller may access the lifetime capital gains exemption on qualifying shares.
What you buy
Asset sale

The location's assets — kitchen and bar equipment, the parking lot and patio improvements, inventory, the lease or ground lease, and the franchise agreement's benefit, subject to consent.

Franchisor consent & ROFR
Asset sale

Required for the specific location changing hands.

The AGCO liquor licence
Asset sale

Transfer application, or a new licence bridged by an interim authorization to keep serving while it's processed.

The lease or ground lease
Asset sale

Needs landlord consent to assign — a free-standing pad site's ground lease can carry different terms than an in-line plaza unit.

Patio permit / municipal licence
Asset sale

Typically needs to be reissued or updated in the new operator's name, especially where the patio sits on municipal or shared parking-lot land.

Tax angle
Asset sale

Buyer gets a stepped-up cost base on the assets purchased.

We tell you which structure fits — before you sign anything.

№ 01.5Costs & Fees

You'll know the number before we start

No open-ended hourly surprises — the cost is confirmed in writing before any work begins.

Type of workFeeHow it's confirmed
Straightforward purchase or saleStarting from $3,388.87
Our charges · taxes included
Confirmed in writing once we see the agreement.
Larger or more complex dealQuoted to scopeShort call → fixed written quote before any work begins.
Searches, filings & third-party feesAt costItemized on your invoice, not marked up.
Franchisor transfer/application fees, landlord consent costs, and a broker's success fee if the deal was listed — all confirmed once we see your agreement.
Most deals start here

An owner-run business

A single Montana's location on a pad site, changing hands between one buyer and one seller.

Start my file
A bit more involved

A larger or more complex deal

A multi-location operator selling several restaurants as one operating company, or a resale involving an owned or ground-leased property that needs its own diligence.

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.

№ 01.6Before You Ask

Common questions

Does the sale include the parking lot and the patio, or just the restaurant?

That depends on how the real estate is held — many Montana's locations sit on a leased pad site rather than owned land, so what's included is defined by the lease or ground lease, not assumed from what's on the property.

Does the patio need its own permit when ownership changes?

Often, yes — where a patio sits on municipal or shared parking-lot land, the permit or licence is typically reissued or updated in the new operator's name. We time this so it's in place before patio season if closing falls near it.

If Montana's patio licence is held separately from the main liquor licence, do both need their own AGCO transfer application?

Often, yes — where a patio operates under its own authorization rather than being folded into the main premises licence, it typically needs to be addressed as its own step in the transfer. We confirm how your location's licensing is structured before the applications go in.

Does buying an existing Montana's mean I skip the disclosure document?

Not automatically — a franchisor-facilitated resale can look exempt from Arthur Wishart Act disclosure requirements, but Ontario courts have read that resale exemption narrowly. We assess whether a disclosure document may still be required for your specific transfer.

I'm buying several Montana's locations from one operator. Does that change the structure?

Often, yes. Buying an operating company that holds multiple locations is more commonly done as a share purchase, so every location's franchise agreement, licence, and lease or ground lease stay intact at the same time.

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 Montana's or its franchisor.

Ready to begin?

Tell us about your Montana's resale — we'll point you the right way and confirm the cost in writing before any work begins.

Prefer to talk first? Call 1-844-900-1070 — it’s free.
ContactStart a File →