Brokers can serve an important role in many financial industries, helping clients find the right financial opportunities and performing market research. Franchise brokers are some of the many variations of brokers, working with clients to find or develop franchising opportunities. Understanding what a franchise broker does can be important when pursuing a career path in this field, as you can learn the job’s core requirements for a more straightforward education and training pathway. In this article, we describe the core duties of a franchise broker and explore how to become one.
A franchise broker is a financial professional who helps match clients with franchising opportunities that meet their specific goals or needs. A franchise is a business model that allows a person to adopt a company’s name and products, performing business under the parent name, while paying royalties and fees to the parent company. For example, a national restaurant chain might allow franchising opportunities to expand its locations. Each location has its own independent managers and staff who operate under company policies but are typically free of direct oversight.Read more: What Is a Franchise? Plus Tips on Purchasing Your Own
Franchising brokers serve many duties for their clients, which can include:
One of the core duties of a franchise broker is to perform crucial market research into specific franchising opportunities in their area. They determine what opportunities are available currently and what advantages they might offer someone who’s new to franchising. They can also determine whether the parent company offering these opportunities has a history of successes with franchises, which can determine whether the broker suggests them to clients. A parent company with a strong history of successful franchises can be likely to offer more resources to their franchisees to support them in their journey and ensure success.Related:Â A Definitive Guide to Franchise Marketing (With Tips)
When a client requests the services of a franchise broker, the broker analyzes the client’s specific needs to determine which opportunity best fits their goals. They can also offer insight to newer franchise owners, describing the responsibilities of a franchise owner and any benefits or drawbacks of the job. Franchise brokers also help clients determine the upfront costs of acquiring and running a franchise and any long-term costs the franchisee might be responsible for over time. Brokers can prepare paperwork that includes the names and details of different franchises that match client needs and help them compare opportunities.
Once a client decides on a franchising opportunity, the broker can help facilitate the acquisition process. They often serve as the mediator between a client and the parent company, helping each other understand the other’s expectations and filing the paperwork. Brokers typically possess unique industry knowledge and an intimate understanding of the brokerage process, which can make them an excellent resource for novice franchisees or prospective franchisees.
Franchise brokers can also work from the opposite side of the brokerage process, helping large national corporations find clients to run their franchise locations. They work with the parent company to identify the ideal candidate for franchise ownership and what requirements the company has for each franchise owner. They can also perform market research for the company in specific areas where franchises might be more successful. Brokers study the success of previous franchises, the availability of similar services in the area and any other factors that might affect a franchise’s performance.
Source: https://www.indeed.com/
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