A Mr. Electric franchise is a licensed electrical contracting business wearing a franchise agreement on top of it, and a resale has to satisfy both layers at once. Alongside the franchisor's own consent process, Ontario's electrical licensing rules attach to the qualified person who holds the contractor's licence, not to the shop's name on the door — so who is going to be the licensed contractor of record after closing is usually the first question we ask, not the last.
Mr. Electric 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 sets price and the conditions that actually decide whether the deal closes: franchisor consent, continuity of a licensed electrical contractor on staff, and a clean review of the territory's active service agreements.
1–3 weeks†The Mr. Electric system reviews the incoming owner's background, financial standing and operational fit, and typically holds a right of first refusal it can exercise before consenting to the transfer.
3–6 weeks†A resale between franchisees can look like a private matter, but Arthur Wishart Act disclosure may still be required — Ontario courts read the resale exemption narrowly, so we confirm early whether a disclosure document applies to your transfer.
runs alongside consent†Getting to closing
Most units operate from a small commercial or light-industrial space rather than a retail storefront; where a lease is involved, landlord consent to assign runs on its own clock alongside the franchisor's paperwork.
2–6 weeks†The buyer, or their designated qualified person, has to be positioned as the licensed electrical contractor of record before the unit can keep taking on electrical work, and the franchisor's operational and systems training happens in the same window.
2–4 weeks†Funds, the franchise agreement, and the assigned service and warranty files change hands together, with the electrical licensing question and any vehicle or equipment financing confirmed before the date is locked in.
1 day, once conditions are met†CFA listing confirms an active Canadian franchise network (Neighborly-family brand), in business since 1994.
Ontario locations within its Canadian franchise network.
This is the first real decision in a Mr. Electric 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 unit's equipment, service vehicles, active service agreements, goodwill and the franchise agreement itself. | The shares of the corporation that holds the franchise agreement, including its history and existing liabilities. |
| The franchise agreement | Assigned to the buyer with franchisor consent, usually alongside a new or amended agreement. | Generally stays with the corporation, but the franchisor is notified of the ownership change and must consent to it. |
| The electrical contractor licence | Doesn't transfer automatically — the buyer's qualified person needs to be recognized as the licensed contractor of record before work continues under the licence. | The corporation may keep its existing licence standing, but the individual qualified person named on it still has to be confirmed or replaced. |
| Lease or premises | Needs landlord consent to assign, where the unit operates from a leased space rather than a home office. | Usually stays in place unless the lease itself has a change-of-control clause. |
| Staff continuity | Employment Standards Act continuity rules typically shape how technicians and office staff carry over. | Employment generally continues uninterrupted, since the employer doesn't change. |
| Typical use | The more common structure for a single-territory Mr. Electric resale. | Occasionally preferred where the electrical licence or key service contracts would otherwise be difficult to reassign. |
The unit's equipment, service vehicles, active service agreements, goodwill and the franchise agreement itself.
The shares of the corporation that holds the franchise agreement, including its history and existing liabilities.
Assigned to the buyer with franchisor consent, usually alongside a new or amended agreement.
Generally stays with the corporation, but the franchisor is notified of the ownership change and must consent to it.
Doesn't transfer automatically — the buyer's qualified person needs to be recognized as the licensed contractor of record before work continues under the licence.
The corporation may keep its existing licence standing, but the individual qualified person named on it still has to be confirmed or replaced.
Needs landlord consent to assign, where the unit operates from a leased space rather than a home office.
Usually stays in place unless the lease itself has a change-of-control clause.
Employment Standards Act continuity rules typically shape how technicians and office staff carry over.
Employment generally continues uninterrupted, since the employer doesn't change.
The more common structure for a single-territory Mr. Electric resale.
Occasionally preferred where the electrical licence or key service contracts would otherwise be difficult to reassign.
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 Mr. Electric territory changing hands between an existing operator and an incoming owner-operator, with the current qualified electrician staying on or the buyer already holding their own licence.
Start my file →A multi-territory purchase, a franchisor asking for equipment or branding upgrades as a condition of consent, or a deal where the licensed electrical contractor of record isn't part of the sale and needs to be sourced separately.
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.
No. Ontario's electrical contractor licensing follows the qualified individual, not the franchise. The buyer either needs to already be, or needs to employ, a recognized licensed electrical contractor before the unit can keep operating under its licence — we build that requirement into the closing timeline rather than assuming it resolves itself.
Not necessarily, but you shouldn't assume the exemption applies just because it's a resale between insiders. Ontario courts have construed the Arthur Wishart Act's resale exemption narrowly, so we check whether your specific transfer genuinely qualifies before you rely on skipping it.
It happens, particularly where a departing owner has built out an adjoining territory over time. A multi-territory purchase generally means a more involved franchisor review, since it touches more than one agreement, and often a different fee quote to match the added complexity.
These are usually included in an asset sale and are itemized and valued as part of the deal, with any equipment financing or vehicle liens paid out or assumed at closing — we confirm which before you sign anything.
Most single-territory resales run about 45 to 90 days, largely driven by how quickly the franchisor completes its review and how fast the electrical licensing question gets resolved — those two tracks, more than anything else, tend to set the actual closing date.
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 Mr. Electric or its franchisor.
Tell us about your Mr. Electric resale — we'll point you the right way and confirm the cost in writing before any work begins.