How to Become a Franchise Broker

The franchise business model is wildly successful around the world -- nearly every major fast-food chain and almost all hotels are franchised. Franchisors have internal sales staffs to handle franchise sales and find new franchisees, but many potential franchisees prefer to work through franchise consultants of brokers to "shop" potential franchises to buy. Franchise brokers can earn large fees for referring franchisees to franchisors. Many franchise brokers earn six-figure incomes and work "bankers hours," making it a very appealing career.

Difficulty: Challenging

Instructions

1. Research franchise-brokering franchises. The majority of franchise brokers are franchisees themselves. Franchisemart and franchoice are two of the largest franchise consultancy franchises available. It is possible to become a franchise broker without associating with a national brokering franchise, but it will be difficult to find franchisors to contract with.

2. Request franchise disclosure documents (FDD) from the franchise brokerage franchises that appeal to you most. The FDD will explain the franchise opportunity in detail from your rights and obligations as a franchisee to the fees and estimated costs associated with the endeavor.

3. Get trained. Every franchise broker franchise puts its franchisees through an extensive training process to learn the franchise industry and the franchises that the broker will be referring clients to.

4. Hang your shingle and start marketing. Like any other self-employed business owner, you will need to start marketing your services immediately after completing your training. Many franchise brokers start out working from home to keep their operating costs low, but networking and advertising are a must.

References

• frannet
• the franchise king
• franchisemart

Who Can Help Sponsored

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on 12/2/2009 Most franchisors are more concerned with selling their own franchise to new investors than they are concerned with effectively training the new franchisee. Just the truth.