The Benefits of a Franchise Broker

There Are Many Reasons to Work With a Franchise Broker

Sometimes, the franchising industry can confuse the terms Franchise Broker and Franchise Consultant. This confusion stems from the fact that these terms are used interchangeably depending on the person you’re working with. By definition, a franchise broker is an intermediary between buyers and sellers of franchises. When wearing the consultant hat, they offer advice to prospective franchisees and formulate suggestions based on the candidate’s finances, skills, and experience.

To become a franchise broker, a franchise broker network like IFPG offers courses that last between four to six weeks and give you all the information you need to pass the Certified Franchise Consultant exam. While there is no official license for franchise brokers, your certification with the IFPG’s network will give you access to hundreds of the industry’s most respected franchise brands.

There are many benefits of using a franchise broker for both franchisors and prospective candidates.

FOR FRANCHISORS

Make Recruiting More Efficient

When you’re a franchisor, there is a lot on your plate. Not only are you focused on the primary function of a franchise (whether it is a yoga studio or a restaurant), but you also have the training, support, and legal obligations to consider. Additionally, franchisors spend lots of time talking to people considering investing in their brands. That’s where franchise brokers come in. The broker does the leg work and uncovers critical items before the candidate reaches the franchise.

Find Quality Candidates

The primary purpose of a franchise broker is to act as an intermediary between buyers and sellers of franchises. The broker identifies qualified candidates who fit a brand’s mission and values. A good franchise broker asks franchisors questions to get a feel for the candidates they want to recruit.

Act as Partners

The franchise broker will work hand-in-hand with the franchisor and the prospective candidate during the discovery process. The candidate feels comfortable with brokers because they are a neutral third party in this process.

Help the Buying and Investing Process Move Forward

A franchise broker can keep the franchisor on track with reminders. Additionally, there are multiple steps for the brokers to manage, including reviewing the Franchise Disclosure Document (FDD), contacting current franchisees in the system and securing funding.

Help Franchisors Save On Overhead

Franchisors only pay brokers when a franchise is sold, which can save the franchisor money on hiring a sales force that interviews countless candidates regardless of whether they work out or not. Additionally, data from the FranConnect Franchise Sales Index shows that leads from a franchise broker close higher than other leads.

When working with franchisees, the broker wears a consultant hat, offering candidates advice.

FOR PROSPECTIVE FRANCHISEES

Offer Education

A good franchise consultant offers candidates a proper education about the regulations, costs, relationships, and opportunities that come along with a specific franchise.

Provide You Thorough Assessments

The consultant will take the time to evaluate the prospect’s financial situation and their previous experience, as well as the skills they will bring to the franchise. The franchisee can also expect a personality test to determine if franchising is right for them.

Assist You With Your Direction

Based on the consultant’s assessments, the broker will introduce the candidate to the available opportunities.

Important Part of Due diligence

The due diligence process a candidate goes through is a three- to four-week undertaking that gives candidates a chance to get to know a franchise company’s executives and ask essential questions. The consultant will guide the candidate through this process.

Confirm Your Decision

The candidate will have a face-to-face meeting with the franchisor and the leadership team at some point. At the end of this process, the consultant will help to confirm if investing in this franchise is the right decision.

Top 100 Franchises

Aamco Logo
Budget Blinds
CertaPro Painters
College Hunks
Fast Signs
Great Clips
Huntington Learning Center
Liberty Tax
Maaco
Molly Maid
Signarama
Urban Air Adventure Park
IFPG Members at Top Golf

Earn Money Selling Franchises

Do you love helping people? Does the idea of being your own boss appeal to you? A career as a Franchise Consultant lets you have it all: a flexible, home-based business with incredible earning potential. And here’s the best part—your work will make a difference! IFPG provides:

  • Over 150+ Hours of Continuing Education
  • 90 Days of Mentorship
  • Exclusive Agreements with Franchises
  • Over 450+ Franchise Members to Present to Clients
  • Access to Leads and CRM to Close Deals

IFPG also provides you with a CFC Certification that designates you as an expert in your field and grants you the recognition that you deserve.

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