Become a franchise broker and help entrepreneurs find the franchise of their dreams.
Delving into the world of franchising can be an exciting, and sometimes intimidating, experience for many aspiring entrepreneurs. With so many franchising opportunities available, along with the significant business investment, working with a franchise broker can bring a methodical process of discovery when exploring franchise brands.
Not only is obtaining the services of a franchise broker a smart decision to help save time in the franchise selection process, it is also a smart way to mitigate any potential risks.
Franchise brokers are also important to business brands as they may need assistance with attracting the right franchisees who meet the qualifications needed for their specific brand.
What Do Franchise Brokers Do?
A franchise broker provides information, guidance, and support for those individuals looking to find a franchise opportunity that they not only qualify for, but also best suits their goals.
Our franchise brokers have strong business competency that can leverage their experience to help individuals navigate franchise opportunities. This assistance provides an important advantage for entrepreneurs looking to maximize the value a franchise can provide.
What Are Traits That Make One A Good Franchise Broker?
A franchise broker can offer a wealth of knowledge when it comes to investing in a franchise opportunity.
Although having this knowledge is important, there are other characteristics that a franchise broker should possess to help them stand out from the crowd.
- Strong Communication Skills – The franchise broker has on-going communication with their client, the franchise company or companies, and resource providers such as a funding company that specializes in the franchise sector. They make the introductions, ensure their questions are being addressed, and provide them a methodical process to learn about franchise opportunities available.
- Good Listener – Not only should a franchise broker be highly skilled at relaying information, but they should be just as good when it comes to listening. A good broker should be able to listen and completely understand their client’s goals, why they want to explore franchising, and what they may qualify for. This will help simplify the process of matching up their client with the right business model and franchise opportunity.
- Money Sense – One of the most important aspects of investing in a franchise is understanding the financial implications and what funding options are available to you. A good franchise broker will identify what you can afford, funding options available, and insure you meet the financial requirements of a franchise brand. Your time is valuable and you want to know you can financially qualify for a brand before spending time with them. The due diligence process will help to determine if a franchise opportunity will meet your lifestyle and financial goals. Working with a qualified franchise broker can provide the process needed to define the potential monetary risk and rewards associated with the investment.
- Connections – Working with a broker that possesses a large network of connections relating to a franchise purchase can make any franchising journey a much easier proposition. A broker who can provide contacts to legal or financial professionals and is an important asset to have for any entrepreneur in their franchising endeavors. These connections are vetted and provided by BAI.
- Well Rounded Skills – Nothing beats working with a broker that has a wealth of skills in their arsenal. This can translate to a franchise broker who can offer coaching, franchise insight, funding considerations, and exceptional business knowledge. This invaluable set of well rounded knowledge and skills will go a long way in assisting any aspiring franchisee with building a solid foundation for their franchising career.
- Strong Level of Commitment – Obtaining the services of a franchise broker with a strong level of commitment is important. You need a broker who will work in your best interest and give you the undivided attention necessary to understand your goals and work with you until an optimum franchise opportunity is found.
Why Do Clients Need a Franchise Broker?
Foregoing the assistance of a franchise broker can have huge implications on a franchisee’s attempt at a franchise career. A franchise consultant can offer a wealth of knowledge and experience that will be beneficial in a franchise transaction.
Here are some benefits a client can take advantage of when working with a broker.
- Possess the knowledge and experience to successfully guide you through the franchise discovery process from beginning to end
- Assist with matching franchisee’s with the right franchise tailored to their specific ideas and business goals
- Provide valuable insight into current or future franchising trends and emerging brands
- Shed light on potential franchising opportunities that may not have originally been on your radar, but are a good match and aligned with your franchising investment goals
- Facilitate communications between the franchise company and you to ensure all questions are being answered. Offer complete piece of mind that you have a professional by your side who can guide you through the entire process
- Save you time and money by helping you avoid critical errors that may lead to unnecessary decisions in your franchise investment
- Mitigate your risk with a methodical process of discovery to find the right fit based on your qualifications and goals
Why Do Brands Use Franchise Brokers?
A successful franchising venture is highly dependent on a mutually beneficial relationship between the franchisor and franchisee. Simply put, a franchise broker saves a franchise company money by outsourcing much of their recruiting efforts.
This beneficial relationship would not be possible if franchise brands are not able to consult with a broker to help attract the best prospective franchisee candidate. A broker can assist a brand with recruiting the ideal candidate that meets their required qualifications and believes in mutual business goals. They have the commitment, drive and personality to be a productive partner within the franchising relationship.
There are a multitude of variables to consider when determining income expectations for a broker. Factoring in work ethic, activity, skills, and experience are all important components that play a huge role in realizing broker earnings.
Franchisor’s typically pay franchise consultants a percentage of the upfront franchise fee for the referral of their new franchise. Franchise companies know our value and pay generously to find qualified buyers who execute a franchise agreement. In general, this percentage can range between 40% – 50% of the franchise fee. Franchise brokers can expect to earn a commission between $15,000 to upwards of $50,000 or more per referral.
Based on these numbers, a franchise brokers’ income could grow dramatically based on their work ethic and activity. Some choose to bring on an assistant to increase volume and activity. Closing 4 to 8 transactions per year leads to a six figure income.
Who Pays The Broker For All The Work?
The BAI franchise broker does not need to handle any of the franchise contracts, collections, and legal costs to receive payment. No headaches for the franchise broker as BAI handles all of this. BAI has the same goal as the franchise broker and their franchise companies; an executed franchise agreement.
In a franchise agreement, the new franchisee pays the fees as outlined in the Franchise Disclosure Document and Franchise Agreement. Commissions paid to a franchise broker are not part of the franchise agreement and not paid by the new franchisee. Commissions are paid based on the contract between the franchise company and BAI corporate office.
How Can A Franchise Broker Help Ensure The Right Investment?
Establishing a solid rapport with a franchise broker is critical in ensuring a good match is found for any franchising venture. Oftentimes a candidate is focused on a specific franchise company and not considering the role of the owner, qualifications required, financial commitment, and available territory.
It may take several meetings before a broker can truly understand a franchise candidate’s personality, ideas and goals before attempting to proceed with a successful match.
Once this important information is gathered, a broker has all the ammunition needed to determine the best opportunity for each candidate. The goal is to save time for the candidate. It is up to the candidate to do the due diligence necessary to ensure it is a great opportunity that is in alignment with their goals.
Understanding the critical steps during the due diligence is of utmost importance when determining the potential return on a franchise investment and if the franchise system is compatible with a candidate’s ideas and business goals.
Why is BAI considered the Premier Franchise Brokerage Company?
Franchise businesses have become such an integral part of our current economic landscape and successfully growing these business ventures are the key to maintaining a healthy economy. This magnifies the importance of BAI and its franchise brokers with the critical services they offer to continuously grow franchise opportunities.
Here at BAI, our standards are extremely high when it comes to selecting high quality, registered franchise consultants to help support our critical business functions. Additionally, our success is your success! Our model is based on performance! When a franchise agreement is executed, everyone wins. Our support must be relevant for our franchise brokers to succeed and bring franchisees to their franchise clients.
With nearly 30 years in the franchise industry, we have built one of the strongest franchise broker networks in America.
We have helped countless brands and entrepreneurs come together to form mutually beneficial business relationships. These relationships have led to successful business expansions, welcomed growth , and a multitude of happy franchise clients who are glad they partnered with us to help develop and grow their brands.