Who is a franchise broker?
Selling a franchise on your own can take a lot of time. In such situations, a franchise brokerage becomes the best option. However, first, you need to understand what is a franchise broker and why is it needed at all.
The modern market provides the franchisor with many convenient tools, including those for franchise promotion. One of them is a franchise broker. However, for profitable cooperation with him, it is necessary to find out all the details. Read more about it in this article.
What do franchise business brokers do?
Business brokers franchises are an intermediary between the franchisor and the franchise buyer. Working with a broker is beneficial for any party.
For the franchisor
The broker is professionally engaged in the sale of the franchise. To do this, he can:
- disseminate information through its channels;
- advertise;
- analyze the strengths of the franchise and create on this basis content that will attract attention to the network;
- register the franchise in the relevant directories;
- monitor the information background on the Internet around a particular brand;
- to give recommendations to the franchisor to increase sales;
- perform other actions.
The broker is interested in sales because he earns a percentage of them. Therefore, it can provide invaluable assistance in the distribution of the franchise.
For franchisees
Franchise sales brokers are useful both for the franchisor and the franchisee. In particular, this specialist advises on all issues related to the purchase of a franchise. He can also select franchises that are best suited for the client according to certain requests.
Pros and cons of working with a franchise broker
Pros:
● Time Saving. The biggest advantage of hiring and relying on a franchise broker is the huge amount of time you save. With the incredible number of franchise opportunities available, searching the internet or databases for the perfect fit is a time-consuming process that can be expedited through a broker. A potential franchisee can save a lot of money and time if a franchise broker steers him away from an unreliable or risky franchise.
In addition, success rates increase with the involvement of a franchise broker, especially when compared to cases where their services are not used. Similar to a realtor, they can arrange all franchise interviews and greatly assist in your franchise research.
● Understanding of the industry. If you are "new" to the industry and find the right business and franchise brokers, you can get a lot out of it.
Plus, finding a good broker who works in the area you are interested in wanting to franchise will work to your advantage.
A franchise broker can tell you more about the industry and performance indicators such as revenue, gross sales, EBITDA, and so on. And you can also benefit from practical knowledge about the industry in your area.
Disadvantages:
● Inexperienced brokers. If franchise brokers don't know the disclosure and the risks it discusses, then they essentially don't understand what they are promoting. Before entering into an agreement with a particular franchise broker, you should check its credentials, carefully examine its track record, and double-check the information it provides.
How to find a franchise broker?
If you just started to develop a web franchise - visit the websiteclosers. In this case, you need to sell at least something on your own. Thanks to this, you will better understand how such a system works, and whether this option is suitable for you. In addition, you will be able to get to know potential franchisees better.
If everything suits you, and you want to develop the franchise system further, you can start looking for a broker. You have the following options:
- Contact a company that deals with franchise packaging to find out if they provide the appropriate services. Usually, the answer is yes.
- Search through acquaintances. Sometimes word of mouth brings good results.
- Inform about your interest in cooperation with the broker on the official website.
- Study thematic groups dedicated to franchising in social networks.
- Search for queries on the Internet, but it is important to carefully study the company or a particular broker.
Tip: before starting cooperation with a broker franchise, you can sell at least 3-5 franchises on your own to learn almost the entire internal kitchen of franchising.
To summarize
Many franchise information sites are actually run by networks of franchise brokers. Include brokers in your network of information about franchise opportunities; but keep in mind that no matter how knowledgeable they seem, no matter how friendly they are, and no matter how many times they refer to you as their client, they work for the franchisor. And they only get paid if you buy a franchise from one of their clients. If they tell you that a facial franchise is perfect for you, they may be right - but in addition to the facial network, they introduce you to, get information about all the other facial franchises available. The broker's client may indeed be the best one for you, but you must make that determination based on your own research.
