Are you thinking of using a franchise broker to help you buy a franchise?
If so, you’re not alone. A fair number of people use franchise brokers.
Should you use one?
Using A Franchise Broker To Buy A Franchise
Sometimes, it’s wise to work with a franchise broker.
Also called “franchise consultants,” franchise brokers assist franchise buyers with several things. One thing they do is help buyers identify opportunities that may be a fit. This, “fit” is based on several factors, including the buyer’s professional aptitude-what they’re best at doing in a work environment. It’s also based on budget. What can the potential franchise owner afford? There’s something else this franchise “fit,” is based on, and you need to know what it is-up front.
Franchise brokers/consultants will only find a fit for you in a franchise with franchisors they’re contracted with.
If you’re attracted to their services because they’re “free,” you need to understand why they’re free.
Franchise brokers offer their services for free because they’re paid a commission by the franchisors they’re contracted with.
I’m not saying it’s a bad thing. I’m just pointing out something that may or may not be obvious to would-be franchise owners.
The Good News
There are thousands of franchise brokers/consultants. That means you have a lot of choices.
Most of them work via phone. They get paid by franchisors they’re contracted with when they successfully match a franchise buyer to a concept they represent.
There Are Two Types Of Franchise Brokers
1. Independent brokers.
Independent brokers are not affiliated with any franchise brokerage firms of franchises. They have their own list of franchisors they are contracted with. They really do their own thing.
2. Affiliated franchise brokers.
I was one myself. Actually, I was a franchisee.
That’s right; I was a franchise broker and at the same time, a franchisee of a franchise brokerage franchise.
(Say that 4 times fast)
We had national meetings/conventions. We held training sessions in-person and by phone. In other words, we were organized. And, we had an advertising and marketing fund that all of us contributed to for national ads.
Should You Work With A Franchise Broker?
It’s up to you.
Today’s franchise brokers work with a lot of different franchise concepts. You could find one through them that you never knew about.
Of course, you could run across a franchise opportunity that makes sense on your own, too.
The point is this:
You have choices.
That’s always good.
Here are a few articles on franchise brokers.