7 Reasons to Work with a Franchise Broker
Selling a franchise on your own can take too much time. In such situations, franchise brokerage becomes the best option. However, first, you need to understand what it is about.
The modern market provides the franchisor with a huge number of convenient tools, including franchise promotion. One of them is a franchise broker. But cooperation with him will be mutually beneficial only if you go into all the details. Who is a franchise broker? Why is it needed at all? How to choose a franchise consultant? We will talk in this article.
Franchise Broker: Who is It?
A franchise broker is a company or an individual specialist who provides services for attracting buyers to a franchise. As a rule, the range of its services is quite wide – from creating a presentation of the selling franchise and searching for buyers to negotiating and tracking payments under franchise agreements.
Experienced specialists in this field can remove almost the entire burden of responsibility from the franchisor company in the field of commercial sales. Often, companies that are just starting their development under the franchise scheme do not understand how to sell a franchise and what potential buyers pay attention to. A franchise broker in this situation is really necessary because he knows the nuances of these transactions and has practical skills in such work.
How to Find a Franchise Broker?
To feel all the benefits of a franchise broker, you need to find it in the beginning. You have the following options:
– Visit the Website Closers franchise website to learn more about the related service.
– Search through acquaintances. Sometimes word of mouth brings good results.
– Send requests to official websites, as well as
study announcements in social networks and thematic groups dedicated to franchising.
– Search for requests on the Internet, but it is important to carefully study the company or a particular broker.
Advantages of Using a Franchise Broker
- Franchise brokers can introduce you to brands and sectors that you may not have considered.
- Franchise brokers can help speed up the franchise research process.
- A franchise broker can quickly tell you in which territories any franchise is available and save you a lot of time before you get too invested in one or two brands.
- Franchise brokers know how to separate the good companies from the bad and can help protect your money.
- Using a broker allows you to quickly identify three or four concepts that best fit your budget and goals.
- Franchise brokers can be especially helpful if you are completely new to the franchise industry.
- A good broker can save you a lot of hassle. With millions of pages of franchise data available online, there is a lot of information to deal with.
What Can a Broker Offer you?
- Offer you the most profitable franchise if you have already decided on a niche.
Offer you the most promising options by analyzing your business.
- Warn you about all the risks.
- Accompany the process of buying/selling at all stages: from search to signing documents.
How to Choose a Franchise Broker?
- Before choosing a broker, think about the purposes for which you need it, besides the obvious one – to buy/sell a product.
- Examine the documents confirming the reliability of the broker. First of all, check for a license.
- Check out the tariffs: different ones are suitable for different purposes. In addition, the amount of commission depends on the choice of tariff.
Current trends in the franchise market are such that 30% of transactions take place directly with the participation of franchise consultants. Involved franchise brokers can help with the sale of your franchise, but you are required to do some work and loyalty to establish and maintain these partnerships. So, now you know how to pick a franchise broker but you should remember that working with a broker is always a multi-stage process:
1) First, to get referrals, you must tell the broker everything in detail about the concept of your business, tell about the peculiarities of work in this area of business, and prospects, it would be right to organize all this directly at the working point, invite one of the existing franchisees to this meeting. At the end of the meeting, offer the franchise broker to personally verify the “quality of the project” – make him a satisfied “client” of your brand.
2) Secondly, you should constantly work with the broker (invite him to franchisee meetings, and corporate events). The more you give your broker friends information about what your brand is, whom you are looking for, and where you want to develop, the better results you will get.