1851

Franchise brokers are industry experts equipped with in-depth knowledge of the franchise market. They play the role of a matchmaker, carefully assessing the interests, skills and goals of potential franchisees to align them with suitable franchise opportunities. But like any business arrangement, there are both advantages and disadvantages to using franchise brokers.1851 Franchise spoke with&nbsp;<a href="https://www.linkedin.com/in/chuck-mckinney-6b01865/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=the-pros-and-cons-of-using-franchise-brokers-2725914" target="_blank" rel="nofollow">Chuck McKinney</a>, principal at&nbsp;<a href="https://www.franchiseconnectionpartners.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=the-pros-and-cons-of-using-franchise-brokers-2725914" target="_blank" rel="nofollow">Franchise Connection Partners</a>, about the role franchise brokers play in helping franchisees find success.&nbsp;<h3>The Pros of Working with Franchise Brokers</h3>With thousands of franchise brands available, brokers help prospective franchisees narrow down their options based on their preferences and qualifications. They’re backed by extensive networks and industry expertise so they can advise franchisees to consider brands they may not have found in their own research.“There are so many times where I'll work with franchise candidates and they'll say, ‘How in the world did you come up with this idea? I love it! I never would have thought about this on my own.’ About 99% of the time, that’s my first conversation,” McKinney said.While some may feel that they have the business acumen and tech savvy skills needed to go it alone and undertake their own online research, McKinney believes that technology simply can’t replace the human touch and years of industry experience.&nbsp;“No matter what technologies or other things come into play, people like having knowledgeable guides and facilitators in the process,” said McKinney.Franchise brokers also play a crucial role in vetting potential franchisees, filtering out individuals who may not be serious or qualified investors. This selective approach benefits franchisors by connecting them with high-quality leads, making for increased efficiency in the franchise recruitment process. By understanding the unique needs of both the prospective franchisee and franchisor, brokers facilitate mutually beneficial connections, which is truly the key to success in franchising.&nbsp;<h3>The Cons of Working with Franchise Brokers</h3>Despite the advantages, working with franchise brokers can have some drawbacks as well. One notable concern is the potential for inflated costs associated with franchise fees. Since brokers typically earn a percentage of the franchise fee upon successful placement, there’s a financial incentive to steer franchisees towards certain brands. This could result in higher signing fees for franchisees, impacting their overall investment.According to McKinney, it’s important to seek out a good franchise system that’s growing responsibly. You should do your best to avoid systems that are overly motivated by financial incentive and solely interested in growing the brand as quickly as possible.&nbsp;Additionally, franchisors may find themselves facing higher expenses when engaging with franchise brokers. Commission rates imposed by broker networks can significantly reduce the franchise fee revenue, limiting the resources available for other crucial aspects of business development, such as real estate, marketing and support.<h3>Navigating the Franchise Landscape</h3>Even with emerging technology, the role of franchise brokers remains significant. While they offer valuable expertise and connections, it's essential for both franchisees and franchisors to approach their partnership with caution. Conducting thorough research, interviewing multiple brokers and scrutinizing franchise opportunities are essential steps in making informed decisions.To learn more about starting or growing a franchise, check out these stories and resources:<ul><li><a href="https://www.1851growthclub.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=the-pros-and-cons-of-using-franchise-brokers-2725914" target="_blank" rel="nofollow">1851 Growth Club</a></li><li><a href="https://1851franchise.com/7-key-questions-you-should-ask-yourself-before-starting-a-franchise-2725239#stories">7 Key Questions You Should Ask Yourself Before Starting a Franchise</a></li><li><a href="https://www.youtube.com/watch?v=QbvoE1C6WCE&utm_source=1851franchise.com&utm_medium=article&utm_campaign=the-pros-and-cons-of-using-franchise-brokers-2725914" target="_blank" rel="nofollow">How to Buy a Franchise: Where to Start</a></li></ul>

Franchise Brokers: The Pros and Cons Of Using Their Services

1851 Franchise

Franchise brokers can support both franchisees and franchisors in making successful connections; however, it’s important to be aware of the drawbacks of using one as well. 

The Pros and Cons of Using Franchise Brokers

the-pros-and-cons-of-using-franchise-brokers

Home Halo

Home Halo’s 160-Step Launch Process: Setting Franchisees Up for Success

home-halo-franchise-launch-process

VA Reimbursement: A Unique Opportunity for Home Halo Franchisees

va-reimbursement-a-unique-opportunity-for-home-halo-franchisees

Home Halo’s "Frank" Method: Coaching Franchisees to Greatness

home-halos-frank-method-coaching-franchisees-to-greatness

home-halo-dan-deak-personal-journey-headshot

Dan Deak's Personal Journey: From Caring Son to Home Halo CEO

dan-deaks-personal-journey-from-caring-son-to-home-halo-ceo

10 Reasons Why You Should Invest in a Home Halo Franchise

10-reasons-why-you-should-invest-in-a-home-halo-franchise

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

Dave’s Hot Chicken Sold to Roark Capital in $1 Billion Deal to Fuel Global Expansion

daves-hot-chicken-sold-to-roark-capital-in-1-billion-deal-to-fuel-global-expansion

Homebuyers Keep Buying — And That’s Good News for Home Service Franchises - 1851 Franchise

Homebuyers Keep Buying — And That’s Good News for Home Service Franchises

homebuyers-keep-buying-and-thats-good-news-for-home-service-franchises

AI Could Push Unemployment to 20% — Fueling a Surge in First-Time Franchise Buyers - 1851 Franchise

AI Could Push Unemployment to 20% — Fueling a Surge in First-Time Franchise Buyers

ai-unemployment-impact-white-collar-job-loss

How To Sell Just One Franchise: What You’ll Learn at FranCamp NJ 2025

how-to-sell-just-one-franchise-what-youll-learn-at-francamp-nj-2025

House Passes Tax Relief Package With Key Benefits for Small Businesses and Franchises

house-passes-small-business-tax-relief-bill-2025

McDonald’s To Hire 375,000 Workers as It Prepares for Major U.S. Expansion

mcdonalds-to-hire-375000-workers-as-it-prepares-for-major-us-expansion

The Ultimate Guide to Selling Franchises: How To Create a Strong Incentive

how-to-build-strong-incentives-to-attract-prospective-franchisees

How Car Sales Taught Buddy's Home Furnishings’ Mitchell Lee the Secrets of Franchise Development

how-car-sales-taught-buddys-home-furnishings-mitchell-lee-the-secrets-of-franchise-development

What You Need To Know About Low-Cost Franchise Opportunities

what-you-need-to-know-about-low-cost-franchise-opportunities

Sola Salons Franchisee Grows Salon Freedom Into a Multi-State Powerhouse 

sola-salons-franchisee-grows-salon-freedom-into-a-multi-state-powerhouse

Dan Yangas Brings Family Flooring Legacy Full Circle With Footprints Floors Franchise in Naperville 

Dan Yangas Brings Family Flooring Legacy Full Circle With Footprints Floors Franchise in Naperville, Illinois

dan-yangas-brings-family-flooring-legacy-full-circle-with-footprints-floors-franchise-in-naperville-illinois

Franchisee spotlight graphic with photo of Sean Phelan & Caring Transitions logo

From Tech to Transitions: Why This Caring Transitions Franchisee Left the Corporate World To Help Families Navigate Life’s Hardest Moves

sean-phelan-caring-transitions-franchise-austin

The Pros and Cons of Using Franchise Brokers

MORE STORIES LIKE THIS