I'm looking to sell my franchise location (a small coffee shop) and was thinking of throwing a quick ad on Facebook Marketplace to see if there's any local interest. But a friend mentioned that franchisors usually have strict rules about where and how you can advertise the resale. Has anyone dealt with this before? Is FB Marketplace a total no-go?
Franchise
Are franchise owners allowed to advertise their resale on Facebook Marketplace?
Read your FDD and franchise agreement. Usually there's a clause that says you have to get written approval before any listing. Marketplace is a bit of a wild west, so they might shut it down if you don't follow the process.
Lol your friend is right. Most franchisors want you to use a broker or at least their internal portal. Putting it on FBMP looks a bit desperate and they can fine you for unauthorized solicitation.
I sold a Subway a few years ago. I wasn't allowed to list it anywhere without going through their approved broker. The commission was was annoying but it protected me from breaching the contract. Honestly, have you checked if yyou can just ask your franchisor for a waiver? Sometimes they'll approve a quiet listing if you ask.
Thanks, I'll dig out the FDD. I had a feeling it was a bad idea. Just frustrating because the local buyer pool is small and Marketplace is where everyone looks first.
Marketplace is full of tire-kickers anyway. You'll get 10 messages asking if you take $5k cash and a broken jet ski in trade. Maybe just stick to the franchisor's process to avoid the headache.
Technically the franchise agreement governs the *sale* but sometimes they get picky about advertising. A buddy of mine got a cease and desist for posting his gym franchise on Craigslist. Not worth the risk.
Wait, cease and desist? That's brutal. But yeah, unauthorized use of the trademark is usually the trigger. If you post the brand name without permission, that's where they get you.
Just ask your franchise rep. Worst they can say is no. But But don't be surprised if they want you to delete the listing if you already posted it.
I used a broker for my sale. He listed it on a few national sites but not FBMP. I think the key is just not using the logo in thhe ad unless you have the ok. You can always describe it generically.