Maximizing Your Relationship With a Franchise Broker: A Guide for Franchisees

Entering the franchising space can be a big deal, but having the right scaffolding in place makes it a lot easier. Franchise brokers can serve as key resources for navigating the complex landscape. A quality franchise broker can match prospective franchisees with franchise opportunities that fit their skills, capitalization and lifestyle goals. To make the most of your relationship with a franchise broker, it’s crucial to understand how to effectively utilize their expertise. 

Clarify Your Goals and Expectations

Success starts at the very beginning of the relationship. Before you engage with a franchise broker, it’s important to clearly define your goals and expectations. Different brokers have their own unique approaches, and as a prospect, you need to find a broker with whom you can connect. A few things to consider are:

• Personal Goals: What are your long-term career and lifestyle aspirations?
• Financial Considerations: What is your budget, and what level of investment are you prepared for?
• Industry Preferences: Are there specific industries or business models you are particularly interested in?

Cliff Fostoff, a franchise consultant at The Franchise Consulting Company, simplified the process by saying, “What I do is I will help you find the best franchise by learning about your goals and your skills and your interests.” 

So, communicating these details early on will help you to find a broker whose approach aligns with what you want out of the process. It may also help you find someone who you identify with or relate to in other ways.

“Finding the right broker is tough. That’s why I suggest interviewing a few people and finding out what their background is,” Fostoff said. “It’s like anything else. You can go to a doctor, and you don’t really know whether they’re going to be a good doctor or not, but hopefully, you’ve at least looked at the reviews first.”

Make the Most of Their Experience

Franchise brokers have valuable industry knowledge and insights, and prospective owners should glean as many important details, tips and tricks as they can. Knowing what to ask for can ensure you make the most of the relationship.

• Request Market Insights: Ask about current trends and growth potential in different industries.
• Understand Franchise Models: Gain an understanding of the operational and financial aspects of various franchise systems.
• Franchise History and Performance: Understand the past trends of given franchisors and learn more about the brand’s lifetime performance.

Be Open and Transparent

Investing in a franchise is not something that should be taken lightly, and being as transparent as possible with your broker will help ensure you’re able to find the best possible match. You should be honest about both your end goals and your preferred way of reaching them. 

If you don’t actually want to work overtime every week for the foreseeable future, be honest about that. 

Similarly, the speed at which you hope to make a decision should be discussed with a broker in the early stages. If you feel you won’t be ready to sign a franchise agreement for another year or two, a broker may give you preliminary information and encourage you to do more independent research. If you want to sign a franchise agreement within the span of three weeks, a broker may explain why you might want to extend that timeline a bit.

A shared understanding of what is expected during the research and buying process can help ensure that both parties understand what’s expected of them and find the expectations reasonable. Transparency from the franchise prospect about long-term goals and preferences can help the broker rule out bad-fit options before they even make it to the table — streamlining and shortening the process overall.

Be an Active Participant

A broker is there to guide you, not do all the work for you. Conducting your own research and remaining in consistent contact with the broker will ensure you have the most successful experience. Here are a few things to keep in mind:

• Investigate Franchises: Research the franchise brands suggested by your broker. Look into their history, reputation and financial performance, and if you come across another brand that catches your eye, don’t hesitate to note it and explore that possibility with your broker.
• Speak to Existing Franchisees: Contact current franchisees to gain insights into their experiences.
• Regular Updates and Feedback: Keep your broker informed of any changes in your goals or circumstances. Be open and honest with feedback to help your broker refine the opportunities they are bringing to you.

Throughout the process, you may find yourself needing your broker more or less. Either circumstance is perfectly acceptable, but the most important thing to do is to just stay connected and involved in one way or another.

“I tell people that my process is to talk to them every single week as they’re doing their due diligence,” Fostoff said. “Now, it could be a five-minute call or it could be an hour call. Some people need a lot of my time, especially if they’re not experienced in business in general, and I don’t mind that. There are some people that, after I’ve shown them a franchise that they really, really like, they don’t want to talk to me anymore. The fact of the matter is, as long as I can talk to them for a couple minutes a week just to do a touch-base and make sure they’re doing what they should be doing, I’m okay with that.”

Maximizing your relationship with a franchise broker involves clear communication, leveraging their expertise and conducting thorough research. By defining your goals, being transparent and engaging actively in the process, you can effectively utilize your broker’s resources to find a franchise that aligns with your aspirations and leads to a successful venture.

Every great franchisee had help buying a franchise. Want to learn more about how 1851 helps franchisees find the right franchise opportunity? Visit www.1851growthclub.com and start your journey.