Full Answer
How to become a franchise broker?
- World-class initial 2-day training
- On-going mentoring
- CRM and website powered by state-of-the-art Salesforce® technology
- Industry’s lowest commission rates: 4.9% to 1.9%
- Equity and residual income opportunities
Should you become a franchise broker?
Franchise brokers can help speed up the franchise research process. A franchise broker can quickly let you know what territories are available for any given franchise and save you a lot of time before you become too invested in one or two brands. Cons. Franchise brokers are paid on commission and typically represent a portfolio of brands.
How do I become a business broker?
- complete a list of core education courses covering the basic aspects of business brokerage
- pass a professional examination developed and administered by the association
- reach a particular level of experience in the broker profession
- maintain a high level of ethical standards based on the TABB Code of Ethics
How to become a business broker?
complete a list of core education courses covering the basic aspects of business brokerage. pass a professional examination developed and administered by the association. reach a particular level of experience in the broker profession. maintain a high level of ethical standards based on the TABB Code of Ethics.
What does a Franchise Broker do?
A top franchise broker will spend their time learning about the concepts they represent. They will know how franchisees make money, what the management is like, how long they have been in business and what a “day in the life” is like.
What is the benefit of working with a franchise broker?
The benefits of working with a franchise broker are pretty specific. I can help you think about what you want your life to look like. I ask questions, I listen to the answers and then I try to find a concept that fits your needs. Sometimes people contact me looking for a restaurant concept, but tell me that they want lots of flexibility.
What Is A Franchise Broker?
A franchise broker helps match prospective investors with the right franchise opportunities. While it’s a broker’s job to get to know you and look out for your best interests, it’s important to understand that a franchise broker doesn’t represent you—he or she represents a portfolio of franchises.
What can a franchise broker introduce you to?
Franchise brokers can introduce you to brands and sectors you may not have considered.
How to find franchisee contact information?
Current Franchisees – It’s important to talk to as many franchisees as you can before you invest. You can find franchisee contact information in the FDD. FBR lists are also a great source of information. As Stites recommends, “Our top lists, reviews and company ratings, help give you an overall picture. If a franchise has a good rating, I’d urge candidates to go out and talk to franchisees new in the business and those who’ve been in business for a while to get different perspectives.
How to find the best franchise investment?
There are many ways in which brokers can help you find the best franchise investment that meets your personality type, expected investment level, and sector of interest. Some use personality profiles while others conduct in-depth phone calls with you. “A franchise broker who understands your goals is more apt to match you with the best opportunities,” said Stites. “Good franchise brokers should also help you wade through the waters of ‘Franchise 101 and be willing to guide you through what can be an intense research process.”
What is a franchise disclosure document?
This could include walking you through the Franchise Disclosure Document (FDD), a document every franchise uses to disclose 23 key pieces of information to its franchisee candidates, including starting costs, the brand’s financial health, and what you can expect to receive as a franchise owner.
How long does it take to research a franchise?
Franchise brokers can help speed up the franchise research process. It could take you weeks or months to research various brands and sectors, whereas a franchise broker can help you quickly target the types of franchises that meet your investment threshold and appeal to your personal interests.
How much do franchise brokers get paid?
Commissions paid to franchise brokers vary, but typically are paid out as a percentage of the initial franchise fee—sometimes up to 50% of an initial franchise fee that could range between $30,000 and $50,000. In other cases, franchise brokers are paid a flat rate. With such large commissions at stake, it’s important for you to feel secure ...
How Do Franchise Brokers Work?
Franchise ownership is more than purchasing a business. It is a lifestyle that you create so you can work for yourself and be independent. In many cases, it is like having another child because of the time, care and effort you put into your business. But, this type of investment comes with great support.
How do franchise brokers make money?
Franchise brokers are paid in the form of commission each time a franchise is sold to a prospective buyer that they refer to the franchisor. However, the amount they collect does not affect the amount you pay for the franchise. The commission is based on a percentage of the franchise fee you pay when you sign a franchise agreement.
How they work
Some brokers are very knowledgeable and provide essential information on franchising to help you effectively navigate the process of identifying the right franchise for you, availing you of lender relationships for any financing needs, and working through the actual buying process.
Pros and cons of a franchise broker
1. A good broker will save you a lot of time and energy retrieving the right information.
What is the benefit of being a franchise broker?
Franchise brokers guide their candidates to the ideal franchise, which ultimately provides freedom and security for franchisees.
How much does a franchise broker make?
A General Estimate: How Much Do Franchise Brokers Make? Since franchise fees in the United States vary from $5,000 to $50,000, franchise brokers can expect to earn a commission in the range of $2,000 to $25,000 per match, with an average amounting up to a whopping $12,000. In 2019, the average franchise fee was $44k.
Is franchising still a gray area?
Although the notion of franchising has slowly but surely made its way into the mainstream, there still seems to be a lot of gray area surrounding franchise brokers. For most people, there’s a lot of confusion regarding what a franchise broker does exactly, and how they earn their income.
Do franchise brokers reap what they sow?
As a general rule of thumb, a franchise broker reaps what they sow. So if you’re a franchise broker, the more you put into your work, the better your output will be. It’s also worth mentioning that the business model followed by most franchise brokers equips brokers with the opportunity to earn a significant income.
A Franchise is a Sensible Starting Point for Success
Whether you are a serial entrepreneur or have never owned a business in your life, you’re smart to consider opening a business broker franchise.
But Why a Business Broker Franchise?
People everywhere are conducting ‘due diligence’ on the Internet and social networks to properly vet companies before deciding to do business with them. Brand awareness is an all-important indicator of reliability and lends credibility to any company.
A Business Broker Franchise Transforms Knowledge Into Power
It takes preparation to open a business broker franchise – or any business for that matter. Typically, a franchise owner has the benefit of following a proven business model. This model is based on years of experience and provides winning approaches to every aspect of operations.
A Business Broker Franchise Gets National Support
Being a solo entrepreneur can be lonely. But when you join a franchise, you have the best of both worlds: You can realize your dream of managing your own endeavor and being your own boss, but with the backing of a national firm.
