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Franchise brokers are key players in the industry, working to both support prospective franchisees in finding great-fit investment opportunities while driving franchisors’ growth forward in a meaningful way.Depending on the broker’s arrangement, they may work directly with the franchisor or take on individual clients. Either way, the end goal is the same — to facilitate a strong match between a franchisee and a franchisor.Market and Client ResearchData collection is at the heart of franchise brokers’ jobs as it equips them to approach the matching process in an even more informed way. Brokers do multiple types of research.Market research allows the broker to understand the available franchise opportunities in the local area, the history of each brand and the strength of each model. This is important as it informs brokers’ evaluations of the concept and whether they feel confident recommending the opportunity to clients.Market and franchisor-specific data must be juxtaposed with each client’s unique interests, needs, prior experiences and long-term goals.&nbsp;Some important considerations include&nbsp;<ul><li>the client’s interest in working from home</li><li>working in a customer-service-heavy role</li><li>making millions of dollars versus simply creating a stable income</li><li>being involved in the business or spending more time working on the business</li><li>any specific industry preferences and financial constraints</li></ul>Sometimes, brokers will provide a personality test of sorts or questionnaire to collect as much information as possible about the prospective franchisee. After collecting and analyzing this information, the broker can begin to narrow the playing field and present specific franchise opportunities.Facilitating the Execution of the Franchise AgreementOnce the broker and the client have worked together and chosen a specific opportunity, the broker can continue to serve as a trusted resource for the franchisee as they navigate additional due diligence, talks with the franchisor and other necessary paperwork.This can be especially helpful for newer franchise owners who have less experience with the franchise agreement process.Industry ConnectionsFranchise brokers also bring a wealth of knowledge to the process. Throughout the franchise agreement stage and once the agreement has been signed, the franchise broker can continue to serve as a helpful contact.&nbsp;Many brokers have strong industry connections and can support the franchisee in being successful in their new business. With connections to franchise attorneys, accountants and real estate professionals, brokers can pull from their own contacts to continue supporting the franchisee, even when the franchisee has moved beyond the part of the process that brokers can be directly involved in.Why You Might Look Into Working With a Franchise BrokerWith all of their knowledge and connections, brokers truly can serve as an invaluable resource to those seeking their perfect franchise opportunity.&nbsp;Oftentimes, brokers’ services are free; they are paid a percentage of the franchise fee as outlined in other franchise documents. This does not change the cost of the franchise for the prospective franchisee but rather is a commission paid by the franchisor to reward the broker’s identification of a great fit to expand the system.A high-quality broker should also never pressure their clients. As a neutral third party, brokers should genuinely have their clients’ best interests at heart and do well to take the necessary time and consideration to match the client with an opportunity that they are completely comfortable with and confident in.

What Does a Franchise Broker Do?

1851 Franchise

Franchise brokers help to match prospective franchisees with opportunities that align with their skills, goals and lifestyle.

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What Does a Franchise Broker Do?

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