Is it Ethical for a Franchiser to Sell his Concept as a Franchise?

From a practical point of view, a franchiser who has found success selling the services and products of franchising outlets for public consumption, has a pretty rewarding business concept which is potentially profitable if sold. However, this is not applicable in all cases and it’s especially risky to assume so if you’re a franchise buyer. Many franchisers though would argue that if they have in fact meticulously crafted a successful business model over years of hard work, then they certainly have every right to sell it to others who would like a shot at this sort of success in the franchising business world.

However, selling is not a particularly good decision for someone who hasn’t been a franchiser for long. Many franchising consultants would cringe at the idea of a rookie franchiser adamant on the idea of selling their franchise, despite not even having sufficient time to perfect a business model. This is an especially unwise decision if not enough capital is on hand. This is because franchising a concept takes a few millions, at the very least. These millions don’t last very long, either if the franchiser isn’t careful and cautious with every penny coming out of his/her pockets.

Selling your business concept as a franchise should be preceded by enough years of very hard work, a successful tried and true business model and a solid capital in the bank. So before making that move, consult an expert and carefully assess your condition before making a huge mistake in more ways than one.


Sebastien Page is Director of Marketing for, the most comprehensive information resource for potential franchise buyers. The company also publishes franchise best sellers such as Bond's Franchise Guide, and Top 100 Franchises Guide. Before joining, Page was Marketing Manager for where he successfully led the Marketing Department. Sebastien Page is ver...

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