Interested in becoming a franchise broker but have little insight on the job? It might be a puzzling job position for many, but it is quite simple to comprehend the working mechanism of franchise brokers. A franchise broker is somewhat of a real estate agent.
For professionals looking to acquire a franchise company, it will benefit them to use a franchise broker. They help find the franchises that match the buyer’s criteria. They then connect the buyer with funding sources and an inspector. The broker will make sure that its client has done the proper research on the franchise and make sure that the application is approved. They assist the client all the way to the closing table.
Franchise brokers are paid by the franchise seller. The broker is paid by the franchisors out of their marketing budget, but when obtaining quality franchisees for their system, of course (in order for the hire to be worth it).
What does a franchise broker do?
- Helps business owners in the assessment of their companies
- Gathers all necessary documents for the selling of the business
- Makes description sheets that promote the business
- Promotes the franchises he has listed
- Guides prospective franchisees
- Acts as an intermediary between the buyer and the seller
- Establishes calls with lawyers and financial advisors which contribute in the sale
- Helps the buyer and the seller throughout the sales procedure
What are the advantages of hiring a franchise broker?
When we are capable of doing the study on our own, some might wonder why to resort to a franchise broker. Well, there are perks people might not be aware of.
Using a franchise expert will boost the opportunities of finding the ideal company for businesses. A franchise expert is well-acquainted with the vast possibilities for business owners. And it saves the buyer’s time in locating the best fit.
You should think about becoming a franchise broker only if you:
- Have money set aside for living expenses for up to a year
- Are willing to spend dozen of thousands of dollars on training
- Are willing to spend about a thousand dollars each month on marketing
- Have analytical skills
- Have stellar presentation skills
- Are great at active listening
And you must understand the following:
- Becoming a good franchise broker takes time. It’s going to take you more than you think to get to know the ins and outs of franchising. Be patient and don’t be shy in connecting with other franchise brokers for insights.
- You might be tempted to become a franchise broker because it is advertised as a highly profitable job. And for the flexible working hours. According to a survey, the average commission of a broker for franchises is $20,000. All these can be true, but don’t expect results from the start. Success is not guaranteed, and you should be aware of that.
How to become a franchise broker
Although no specific education is needed, to become a franchise broker it is helpful to possess a bachelor’s degree in a business-related field. It will enhance your resume and increase your credibility. Join an established firm and start your business career to gain industry experience.
In addition to the university and business background, specialized training is recommended, if not essential. Enroll yourself in franchise broker courses, because you will get to know all about sales tactics, the creation of marketing plans and legal compliance.
You can opt for training companies such as Franchise Brokers Association, International Franchise Professional Group or Franchise Training Institute, just to name a few. They offer services such as live training and online mentoring and support.
The International Franchise Association has a certified program and the completion of the coursework leads to a Certified Franchise Executive designation.
The International Franchise Professional Group also has a program that will help you get a strong understanding of franchise brokerage, providing you with tools needed to run your own business. Once a member, you can review materials from any location as long as you have Internet access. It is a great program for both starters and established professionals who want to remain on top of their game.
This job position comes with lifestyle advantages. You can pretty much work from everywhere. All you need is an Internet connection and a telephone. You will only have to be present at official meetings. A franchise broker schedules appointments around their life, not the other way around. Sounds good, right?