The number of franchise brokers entering the marketplace is growing every day. After all, unlike lawyers and accountants, no examination or certification is required to start working in the field. Franchise brokers are often identified as franchise consultants. While both help match franchisors with aspiring entrepreneurs, they are still two entirely different entities.
A franchise broker serves as a mediator for franchisors who seek the perfec`t candidates for their franchise. While franchise consultants are experts paid with a fixed amount, brokers are paid on commission basis.
Role of Franchise Brokers
* Finding the right franchise – For first-time franchisees, choosing a franchise may be a risky venture. They often make mistakes based on popular concepts or their budget restraints. A franchise broker prioritizes the franchisee’s interests to improve his chances of being successful.
* Keeping abreast of all the available options – Most entrepreneurs already have too much on their plate that it’s hard to keep abreast of what’s happening in the franchising industry. This is where brokers help, as they are knowledgeable in the current trends and of a wide range of franchise options. Web-based searches are helpful, but an expert franchise broker can tailor his approach to match your interests and guide you throughout the entire process.
* Introduction to franchisors – With their network in the industry, you’ll have more opportunities to meet with prospective franchisors. This is a more efficient way to get started than by filling out forms and getting screened alongside hundreds of other applicants.
A good franchise broker is unbiased when it comes to the franchisors and maintains a good reputation. Seeking their advice and expertise undoubtedly offers innumerable benefits. Still, it’s important to be cautious in your selection and find someone that takes your goals into account. The franchise industry is vast and crowded, and one should tread through it carefully.