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Using a Franchise Broker

Using a Franchise Broker-1


good franchise broker can help aspiring franchisees to choose their prefect business by providing them with expert insight into possible opportunities with the franchisers they represent. They can save valuable research time and can often point franchisees in directions they would not otherwise have thought of but which could turn out to be the right ones for them.

A franchise broker is someone who is employed by a franchise company, or several different franchise companies, to effectively sell franchises to those who are interested.

It does not cost to use a franchise broker as they earn commission each time someone buys a franchise from one of their clients. This is typically around 40 to 50 per cent of the fee paid by the new franchisee.


For this reason some people are put off consulting a franchise broker. They believe the broker will be biased and will only recommend opportunities among those franchises they represent. This may be true, but simply by speaking with a franchise broker a potential franchisee is not obliged to buy anything, and the broker may be able to give them valuable information about a range of opportunities that they would not otherwise have heard about.


A broker will listen to the franchisee's preferences, make some suggestions and ask to show them some of the franchises they work for. If a franchisee finds any of these opportunities appealing he or she can then contact the franchise company directly to find out more. If, however, none of them are suitable they can simply move on and either conduct their own research or consult a new broker. Nothing is lost by speaking to a franchise broker and there are no commitments to be made.

 Franchise Broker

Of course one thing for a franchisee to keep in mind is that a franchise broker is standing as a representative for their clients, and so it is in their interests, if they wish to keep their job, to introduce the right candidates to these clients. This means introducing people who have the skills, qualities and above all the character necessary to work for any given franchiser.

Therefore franchisees can be sure that a franchise broker will not be making suggestions simply to sell something, but rather because they believe both franchisee and franchise are well suited.

Franchise brokers can be an extremely valuable research tool when looking for new opportunities. However, it must be borne in mind that they can only provide information about the franchisers they represent. Relying solely on one franchise broker is therefore not a good idea. Doing additional research and consulting other industry experts is essential in order to fully evaluate all the opportunities that are out there.

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