change of business ownership -what will happen to employees

Hi, we are a franchisee, a single proprietorshop and about to preterminate the franchise due to financial losses. May I ask what will be our obligations to our employees if in case they will be absorbed by our franchisor? What will be the steps I need to take to ensure that I have no obligations to them and I can close my business? Do I still need to report it to DOLE? I have one regular, one proby and one contractual employee.. If in case they decided not to be employed to our franchisor, do I need to pay them separation pay even I am experiencing financial loss? please advise. Thanks,