Why you should use a Franchise Broker

There are many advantages to getting help from a knowledgeable insider – someone who understands the inner workings of an industry or issue. When exploring a new opportunity, having someone who can interpret the jargon and explain a process can be a tremendous help. That is why most people hire a lawyer to handle court cases; and work with a realtor to purchase a home. A franchise broker can help you identify businesses that are closely aligned with your talents, interests, and goals. While it is possible to spend months researching different options on your own, you may miss out on the perfect opportunity that is right for you. In some cases, people may overlook an unfamiliar brand or not recognize the value of a franchise that offers a lot of upside potential, especially if it slightly outside your search criteria.

The internet is a valuable tool for research, but it is limited if you do not know what to look for or how search engines work. You may search certain terms and see only the companies that paid the most to be listed high in the results. High visibility on the internet does not correspond to the relative value of a business opportunity – all it means is that someone paid more to have you see their ad. There are so many business opportunities listed online that it is easy to be overwhelmed or fall for promises of a less-reputable organization. You may also never see some franchises that are a fit for your skill set and goals, because they do not match the words you entered in the search bar.

There are over 5,000 registered franchises and more than twice as many “Business Opportunities” or “Biz Ops” available today. A franchise broker can help you understand the difference between these types of opportunities so you can determine which format is right for you. Whether it is a franchise or Biz Op, there are many terrific choices, and invariably there are some bad ones. A competent broker can help you focus on businesses that meet certain quality standards and guide you to avoid making any potential mistakes. Brokers may not have current agreements with every franchise, but they can often obtain the listing if it meets your requirements as well as their own standards. The key advantage is that brokers have agreements with solid, reputable franchisors. They are well-informed on established concepts, as well as new up and coming businesses that offer an excellent deal at the early stages of their growth. An educated franchise broker can help you determine what fits your requirements and holds the best value.

One important note – the franchise broker does not charge the candidate a fee for their service.

One of the biggest challenges for franchise companies is finding entrepreneurs who will be a good fit for their particular business model. As you can imagine, franchisors get thousands of requests for their information packets, but most of these come from people who are not qualified or motivated to move forward to purchase a franchise in their organization. These companies generally do not have a staff large enough to vet all potential franchise owners, and they cannot do an effective job of bringing in new franchisees. This is a reason why franchisors like to work with a broker. A broker will pre-screen the individual to make sure they are a match for the brand. The broker will also educate the potential buyer, so they are informed about the opportunity, the process, and know what questions to ask about the business. This saves the franchisor a great deal of time and money and brings higher quality candidates to their attention. The franchises pay a fee to the broker if the candidate buys a franchise. This creates a winning scenario for all parties involved.

One important note – the franchise broker does not charge the candidate a fee for their service. The broker works with you and for you – they get paid by the franchise organization upon purchase. So, there is no downside to using a broker for your search!

In the final analysis, the choice, and the responsibility for researching the opportunity is on you. However, as you contemplate such a huge decision, you should not leave any stones unturned. Getting help from a competent broker is one of the best resources you can employ and since the seller pays the fee, the service is free to you. So, the question becomes: Why not use a broker?

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