TREADSTONE LAW · ONTARIO · DIGITAL LEGAL SERVICES · EST. MMXXI ·TSL
Home/Buying & Selling a Business/M&M Food Market Franchise Resale
№ 01Buying & Selling a Business · Franchise Resale · Ontario

Buying a M&M Food Market franchise

M&M Food Market operates as a frozen-food retailer rather than a food-service kitchen, and the brand itself explicitly markets 're-franchised' existing stores alongside new-build locations — meaning an established resale market is part of the system, not an afterthought. Freezer and refrigeration equipment, inventory, and the lease typically matter more here than a health-unit kitchen inspection.

№ 01.1The Resale, End to End

From offer to ownership

M&M Food Market 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

The offer sets price and terms, conditioned on the franchisor's consent and a satisfactory review of the store's freezer and refrigeration equipment and lease.

1–2 weeks
02

Franchisor consent & ROFR review

The franchisor reviews the proposed buyer and the deal terms as part of its re-franchising process, and may exercise a right of first refusal before approving an outside purchaser.

3–6 weeks
03

Disclosure considerations

Whether a franchise disclosure document is required for this resale gets confirmed early, since the statutory resale exemption is read narrowly by Ontario courts — including where a brand actively facilitates re-franchised store sales.

reviewed alongside consent

Getting to closing

04

Lease assignment

The commercial lease needs the landlord's consent to assign — usually in a strip mall or plaza setting typical of the format.

2–6 weeks
05

Equipment & inventory review

Freezer and refrigeration equipment is confirmed as owned, leased, or financed, and frozen inventory is counted and valued ahead of closing.

runs alongside the other steps
06

Closing

Funds, equipment, and the lease all change hands together, with frozen inventory settled at the count on closing day.

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

About the M&M Food Market system

Official mmfoodmarketfranchise.com site confirms 'new and re-franchised stores are available across the country'

National Canadian frozen-food retailer with numerous Ontario locations (examples cited include Nepean and Sault Ste. Marie)

Site explicitly markets 're-franchised' (existing) stores alongside new-build opportunities

№ 01.3Deal Structure

Asset sale or share sale?

This is the first real decision in a M&M Food Market 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 store's assets — freezer and refrigeration equipment, leasehold improvements, frozen inventory, the lease, and the benefit of the existing franchise agreement, subject to consent.The shares of the operating company — every location it holds, and everything it owes.
Seller's liabilitiesGenerally stay behind with the seller's existing corporation.Generally come with the company, known and unknown, across every location it operates.
Franchisor consent & re-franchising processRequired for the specific store changing hands, run through the franchisor's own re-franchising process for existing locations.Required for the change of control itself — the franchisor reviews who is actually taking over.
The leaseNeeds landlord consent to assign, typically in a strip mall or plaza setting — often the practical bottleneck for closing.Usually stays in place unless the lease has its own change-of-control clause.
Staff (ESA)Employment Standards Act continuity rules typically apply to how store staff carry over.Employment generally continues uninterrupted — the employer doesn't change.
Tax angleBuyer generally gets a stepped-up cost base on the assets purchased; an HST s.167 election may apply.Seller may access the lifetime capital gains exemption on qualifying shares.
What you buy
Asset sale

The store's assets — freezer and refrigeration equipment, leasehold improvements, frozen inventory, the lease, and the benefit of the existing franchise agreement, subject to consent.

Seller's liabilities
Asset sale

Generally stay behind with the seller's existing corporation.

Franchisor consent & re-franchising process
Asset sale

Required for the specific store changing hands, run through the franchisor's own re-franchising process for existing locations.

The lease
Asset sale

Needs landlord consent to assign, typically in a strip mall or plaza setting — often the practical bottleneck for closing.

Staff (ESA)
Asset sale

Employment Standards Act continuity rules typically apply to how store staff carry over.

Tax angle
Asset sale

Buyer generally gets a stepped-up cost base on the assets purchased; an HST s.167 election may apply.

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 M&M Food Market store changing hands between one buyer and one seller, with a standard lease and re-franchising consent process.

Start my file
A bit more involved

A larger or more complex deal

A multi-unit operator selling several stores as one operating company, or a resale where the franchisor's right of first refusal or the equipment's financing needs to be worked through 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.

№ 01.6Before You Ask

Common questions

M&M Food Market advertises 're-franchised' stores — does that mean the legal process is different from a typical resale?

Not fundamentally — the franchisor actively facilitating existing-store sales doesn't change the underlying legal steps: consent, disclosure considerations, and a new franchise agreement still apply. What it does mean is there's a more established resale pipeline within the system, which can make the franchisor's process more predictable than at a brand where resales are rare.

Is diligence different for a frozen-food retail store than for a restaurant franchise?

Yes — since M&M Food Market sells packaged frozen product rather than preparing food on-site, diligence concentrates more on freezer and refrigeration equipment, cold-chain integrity, and inventory than on a health-unit kitchen inspection, which is a lighter step here than at a food-service brand.

What happens to the frozen inventory on closing day?

Most deals count and value the frozen inventory at closing, added to the purchase price. The method — who counts, how any spoilage is handled — is agreed in the purchase agreement rather than improvised at the store on the day.

Does buying an existing store mean I skip the franchise disclosure document?

Not necessarily. Ontario courts have read the resale-disclosure exemption narrowly, and franchisor involvement in facilitating the resale can trigger a full disclosure requirement anyway — even where the brand itself markets the store as 're-franchised.' We confirm this early rather than assume it.

Is the freezer and refrigeration equipment usually owned outright, or financed?

It varies by store — cold-storage and display equipment is frequently financed or leased given its cost, so a PPSA search and, if needed, a lien payout at closing are standard parts of the deal regardless of the individual store.

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 M&M Food Market or its franchisor.

Ready to begin?

Tell us about your M&M Food Market 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 →