Franchise Brokers

Re: Franchise Brokers

The best way to think of Franchise Brokers is like real estate agents. They get a commission if a franchise is sold and mostly live on the commissions they generate.

Re: Franchise Brokers

As long as you understand their motivations, I think they can add a lot of value. They keep abreast of all the new franchises and have former customers that they can contact on your behalf to get the inside scoop on a franchise. As with anything else it is really depending on the broker so make sure you select a good one.

Re: Franchise Brokers

They do add value if you get an experienced one. Some of the questions you should ask are:

-How long have you been in the business?
-How many franchises do you represent?
-What differentiates your firm from other brokerages?
-How many franchises have you sold in the last year? How many ________ franchises did you sell (the ones you are looking at)
-Can you provide me with some referrals?

Re: Franchise Brokers

Franchise brokers get paid by the Franchisor so it is to your advantage to use one and enjoy the benefit of their experience.

Re: Franchise Brokers

A couple of additional questions you may want to ask:

-What has been the experience of other people who have bought this franchise?
-Can you provide me with the UFOC and other related documents prior to me talking to their sales person?
-How doe the process work and what is your relationship with the Franchisor?
-Are there any Franchises in the industry I am looking at that you do not represent?

Re: Franchise Brokers

It is precisely because they work for the franchisor that it is NOT in your best interest to use a broker. It is in the franchisor's best interest. The broker makes his money from the franchisor when they sell a franchise. Why is this not good for you? They will steer you in the direction of the franchises that they work for. Not necessarily the one that is best for you.

Anything a franchise broker does, you can do yourself.

UFOC's are distributed freely. All you need to do is ask.

Do your own research. Read through the Franchise Handbook magazine (found in any magazine stand). Look through the tiny ads too. Don't be drawn to just the glossy ads. There are many, many great and affordable franchises out there.

I am a franchise owner and speak from experience. I offer a very comprehensive manual on how to choose the right franchise below.

Re: Franchise Brokers

It has been our experience that a lot of Franchisors are reluctant to provide the UFOC for good reason they contain proprietary information and can be over 400 pages. They typically like a client to be further along in the sales process to get a copy. Some even require a visit. I agree with the other comments that you should approach brokers with caution. But franchise brokers are exactly like real estate brokers. As long as you know the properties they represent and the limitations it is worth using them because they know the ins and outs of the franchises they represent - like in a real estate transaction we recommend you do research on your own and even consider using multiple brokers who represent the franchises you are looking at.

Re: Franchise Brokers

Franchise brokers can help grow a franchise business. There are many entrepreneurs who create great business models that can be franchises.
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Re: Franchise Brokers

The Franchise partner division of Franchise Alliance, Inc. is standing by to handle every detail from the writing of your operations manual to your web site advertising to the legal work. One stop shopping for the new franchise! Best of all we will also introduce your franchise to our network of franchise brokers, guaranteeing that you will have national exposure to sell your opportunity. Our equity stake in your franchise ensures our continued sales efforts working for our mutual benefit.

Re: Franchise Brokers

Hi,

It has been our experience that a lot of Franchisors are reluctant to provide the UFOC for good reason they contain proprietary information and can be over 400 pages. They typically like a client to be further along in the sales process to get a copy. Some even require a visit. I agree with the other comments that you should approach brokers with caution. But franchise brokers are exactly like real estate brokers.

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Re: Franchise Brokers

Franchise Brokers is like real estate agents. They get a commission if a franchise is sold and mostly live on the commissions they generate.

Re: Franchise Brokers

http://www.entrepreneur.com/franchises/franchisingyourbusinesscolumnistmarksiebert/article185010.html

I found this article to be very helpful

Re: Franchise Brokers

Franchise brokers are employed by franchise companies to sell franchises. If you are looking at franchise opportunities, sooner or later you will encounter a franchise broker.
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Re: Franchise Brokers

Division franchise partner of Franchise Alliance, Inc. is ready to tackle all the details of writing your operations manual for your advertising on the site for the legal work. One stop shop for the new franchise! Best of all, we will also introduce you to our franchise network of franchise brokers to ensure that you national exposure to sell your apartment.