The Best and Worst Things About Being
a Franchise Broker
There are some franchise broker firms in the industry offering
their opportunity in an almost "too good to be true" sort of
fashion. Some will attempt to lead prospective brokers on with
the notion that if one just pays their initial investment,
goes through the training and buys some leads they will instantly
be a 6 figure earner. While this is absolutely possible, it's
no where near guaranteed nor automatic. For the right person
being a franchise broker is a fun, exciting and lucrative opportunity
but don't be misled, it's real work, real business and just
like anything else is not for everyone! Below are some of the
best and worst things about being a franchise broker.
The Best Things About Being a Franchise Broker
- If you love working with like minded entrepreneurs and
enjoy exploring different business models this business is
a lot of fun.
- It's a great lifestyle business offering lots of mobility
and schedule flexibility.
- It can be done from anywhere as long as you have a phone
and internet access.
- There are several different ways to market and grow your
business.
- Unlike real estate, mortgages or many other brokered business
it's not insanely competitive. In fact it's somewhat rare
that two franchise brokers compete with one another for the
same candidate or deal.
- It's suitable for a full or part time effort. Some brokers
jump in with both feet while others bundle this business
with other ventures.
- It's a great way to learn more than most could imagine
about the franchise industry.
- There's great opportunities at every turn. Many brokers
end up owning area development territories for a fraction
of the typical investment.
- The commissions are great. An average single unit franchise
commission is around $15,000 with some as high as $25,000
- $30,000 for a single deal. Master franchise and area developer
placements are even more.
- A broker's services are free so it's a
zero risk proposition for their clients. The franchisors
pay for their services.
- It's a great home based business.
- It requires no employees, no inventory, very little overhead
and no receivables.
- It's rewarding to help others achieve their dreams of business
ownership.
The Worst Things About Being a Franchise Broker
- It's a somewhat low percentage business. Typically one
in 30-40 prospects will buy one of the franchises offered
by the broker.
- Franchise deals commonly take 60 - 120 days to complete.
For many this is an uncomfortably long sales cycle.
- Sometimes deals fall through for reasons beyond a broker's
control such as funding, territory availability, cold feet,
etc.
Franchise brokers need to know that this is real business
and requires a serious effort and investment. It requires determination,
persistence and patience but for the right person being a franchise
broker can be one of the most rewarding opportunities available.
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