As an investor looking to get your first franchise, you want to make a well-informed decision. The thing is, this is not an easy thing to do, especially when you’re just starting your franchise research journey. Considering a large number of franchise brands available, narrowing down your options can come as a challenge. That’s when it helps to have a franchise broker to consult with.
A good franchise broker will help you draw a comparison between all the different opportunities that are available. They can also be of tremendous help when it comes to minimizing risks, not to mention how much time they can save you with their skills and expertise. To help you understand the importance of working with franchise brokers and how they can protect your interests, in this article, we’ll be exploring the role of franchise brokers, who they are, and why you need one.
Who are franchise brokers?
First things first, let’s explain what the role of a franchise broker is. In essence, franchise brokers are there to help franchise candidates identify suitable franchise opportunities. Also referred to as “franchise consultants” or “business coaches”, franchise brokers act as intermediaries between franchisees and franchisors. Because they’re experts when it comes to the franchise landscape, they can be of great help to investors trying to narrow down their choices.
By relying on vast knowledge and expertise in the field, franchise brokers can help you determine whether you should invest in a particular franchise. They will also educate you on the franchise opportunities available. If you’re the right fit for the brand, a franchise broker will refer you to that particular franchise.
How do franchise brokers help you find the best franchise investment?
Franchise brokers are, in a sense, similar to travel agents. The job of a travel agent is to learn as much as they can about the client and their needs, interests, and expectations they have for their trip in order to provide them with the best possible experience. Franchise brokers are just like travel agents. They absorb all the essential information provided by the franchise candidate and match them with the best franchise.
That said, just like in any other industry, there are good brokers and bad brokers. Good brokers will keep your best interests in mind while also holding a license required to become franchise resale brokers as well as other necessary qualifications and certifications. Bad and untrained brokers, on the other hand, may forfeit your interests which could lead to financial losses. To prevent this from happening, consult with several different brokers and see what they’re offering, and always ask for references.
Why do brands use franchise brokers?
A good franchise broker can be quite useful when it comes to accelerating business growth and expansion. This is why they’re often hired by brands that are looking to venture into new markets and take their business to the next level.
That said, they aren’t typically used by larger brands that are established. Rather, it’s those emerging and mid-level brands that are usually seeking the help of franchise brokers. With their help, businesses can generate new leads and boost their profitability and reach by attracting the right candidates. To them, franchise brokers are very much like a marketing expense, and their capability to bring candidates that are a good match for the business is what they’re valued for. This is something to keep in mind as well when choosing a franchise broker to work with. Look for those with established records. As for those brokers who don’t bring qualified or right candidates – chances are, they won’t last too long.
What are the advantages of working with franchise brokers?
Last but not least, you may be wondering how working with franchise brokers is beneficial to a prospective franchisee. First on the list of perks are the time savings. A broker spares you the hassle of examining all the available franchise opportunities. They speed up the process and point you in the right direction.
Other than saving time, franchise brokers can also save you money. This is especially important for someone who’s just getting started on their franchise research journey. With a skilled and knowledgeable broker on your side, you don’t have to worry about making the wrong choice. They’ll work to appeal to your own personal interests and identify franchises that meet your needs. Finally, if they notice you falling for a certain franchise concept or see that you’re starting to become too invested in a brand or two, you can rest assured they’ll be there to protect you from making a financial faux pas.
When you’re just getting started in franchising, there are numerous questions you may be asking yourself. You are, after all, making investing decisions, and you want to ensure well-informed, intelligent choices. By having an experienced franchise broker to hold your hand through the process and help you navigate the complex waters of franchising, you can rest assured you’ll be starting your franchise research journey on the right foot.