Franchise Marketing Agency – Blog
MDG Advertising – Branding / Marketing / Lead Generation

Rewards And Risks Of Selling Your Franchise Concept

While selling your franchise concept offers the opportunity for faster growth by reaching new markets and raising your brand profile on a national scale, it’s important to understand the enormous time and costs associated with bringing in new franchisees. reports on why not every concept can be franchised and how the right franchisees can make or break your business.

"You can have the best concept in the world, but if you don't have the right people it can fail," says IFA spokesperson Alisa Harrison.

Studies show that only about 25 percent of businesses that plan to develop a franchise system are successful, with less than half surviving the first few years. Even major brands like 7-Eleven, Boston Market and Mrs. Field’s Cookies have declared bankruptcy at some point in their history.

It’s also important for both sides to have good legal counsel. New franchisors need an ally to help them handle all of the paperwork and prepare them for ownership, while prospective franchisors should have a legal expert determine if their concepts are worthwhile franchise opportunities.

Some industry experts advise franchisors to ask friends or family to be their first franchisees. This provides the benefits of trust and an established relationship since it’s easy to choose the wrong people and get badly burned.

If family and friends are too close for comfort, turn to a nearby chamber of commerce to seek qualified local prospects or contact a franchise broker to do the searching for you. While brokers can provide you with many ambitious leads who actively sought out their services for opportunities, the convenience can cost you up to 50 percent of the franchisee fee from the new owners.

The overall takeaway is that it’s essential to go into the franchising process with realistic expectations and knowledgeable support to ensure that your franchise concept is poised to prosper.

MDG Advertising is a full-service South Florida advertising agency, with offices in Florida and New York, that specializes in developing targeted franchise marketing solutions, exceptional online executions, and solid branding and media buying strategies that give franchises a real competitive advantage. MDG Advertising handles creative, media, and interactive marketing for Coverall, one of the world’s leading commercial-cleaning franchising companies, with a global network of more than 90 support centers and 9,000 franchisees.

Our core capabilities include advertising, branding, creative, digital marketing, media planning and buying, public relations, Web design and development, email marketing, direct mail, video marketing, social media marketing and SEO. To view MDG’s portfolio, click here. For more information, email MDG, call 561-338-7797 or log on to

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