5 Good Reasons to Work With a Franchise Broker You should never turn down free assistance.
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In your quest to pursue business ownership through franchising, it's expected that you'll spend a fair amount of time doing your own research. Perhaps you got a great tip on a red-hot concept from a friend or colleague. Or someone in your network looks to be doing quite well for themselves as a franchise owner. But if you're serious about officially entering the investigative process, it's highly advisable to seek the knowledge and experience of a seasoned franchise broker. It's not just access to their information that's beneficial — franchise brokers also serve as the navigator for your entrepreneurial journey. They're supposed to guide you through the process, manage your expectations and provide an unbiased opinion of the franchise concepts that match up well with your work-life preferences, experience, goals and income potential.
To belabor the point, here are five good reasons to work with a franchise broker.
1. It won't cost you a dime
Franchise brokers offer their services to franchisee candidates for free. They earn their money from commissions, paid only when a franchise sale is procured for a buyer. It's typically a percentage of the initial franchise fee outlined in a particular brand's franchise agreement. In a way, the arrangement is quite similar to real-estate agents. The amount collected by a franchise broker upon the sale of a franchise has no bearing on your purchase price.
2. It saves you (lots of) time
Sure, you could do your own independent research — there's plenty of information online. In fact, there's an overwhelming amount of information online. Where should you begin? What's the most important thing to remember? How can you find a business that you'll enjoy owning? These rhetorical questions will greet you at the outset of your journey. But an experienced franchise broker, one who's helped hundreds — if not thousands — of other entrepreneurs become business owners, can help you answer them. They have an innate knowledge of the franchising process, concepts across multiple industries and how best to match candidates with the right opportunity. You'll get much further, much faster, with a franchise broker, because they know how to cut to the chase.
3. You'll still get to be the ultimate decider
When you're thoroughly engaged in the franchise investigative process, you'll probably be weighing the pros and cons of multiple concepts. That's expected. But when you work with a franchise broker, you'll still get to make the ultimate decision on which franchise to choose. Brokers are not there to sway your opinion by pitting one concept against another. Their concern is how well a particular franchise opportunity matches up with your stated goals. With a broker, you should never feel pressured to make a certain decision.
4. They know people
Helping candidates find the perfect franchise is the primary mission of a broker. They want you to own a concept that perfectly aligns with your interests, goals and work-life balance. You can rely on their knowledge and experience to guide you through the investigative process, but there's another advantage to working with a broker: They know people who can help you close the deal. Don't know of a reasonably priced franchise attorney? They will. Need an accounting professional to review your financial capability before the purchase? They'll find you one. Need a commercial real-estate agent to help advise you on site selection? No problem. One of the bonuses of working with a franchise broker is the network of resources in their Rolodex. Take advantage.
5. They really do have your best interests at heart
Most franchise brokers will begin with a personal consultation of your current situation. They'll ask about your motivations, what you want in a business and your expectations for owning and operating one. They listen carefully during these initial assessments. Franchise brokers will continually tell you to keep an open mind. They aren't trying to steer you into owning a particular concept. Believe it or not, they really do have your best interests at heart. They want to match you with the perfect business ownership opportunity. Because they know if they can do that, they'll have a satisfied customer. And satisfied customers typically aren't shy about recommending the broker's services to others. And for franchise brokers, a pipeline of franchisee candidates is crucial to their ongoing success.Related: 5 Tips for Finding the Perfect Franchise