Hey ladies have you thought of starting your own business or perhaps buying a franchise. Well maybe you should consider becoming a franchise broker. You can set your own hours and help others achieve their dream of owning a business. Matching potential business owners to a suitable franchise is the role of a franchise broker. Although entrepreneurs do not need a broker to purchase a franchise, a broker’s expertise can help speed up the process. Brokers help match clients to opportunities suited to their interests and financial situation. Brokers receive payment from the franchises that they represent. Many training programs exist to help turn average people into franchise brokers. Although these programs can be helpful in fast tracking your career in the franchise field, they are not always necessary.
Many online academies and franchise brokerage associations offer tempting courses, in franchise brokering, ranging in cost from $350 to $5,000 for aspiring brokers. Although these courses are helpful for those new to the business, the same information can be gleaned from those already in the business. Working with an established franchise broker is one way to break into the business without an outlay of money on your part. There are some national franchise brokerage firms, for those looking to gain experience. Would be candidates should not expect to start brokering deals right away. A training period is the norm just like any other job. Coming into the workplace with some background in small business startups or franchising is always a plus.
Building a Client Base
Even though brokers are not technically sales people, they must find clients to represent. Partnering with associations such as the International Franchise Professionals Group, or IFPG can help garner exposure. Brokers also use the internet extensively to find potential clients through the use of websites, blogs and social media. Some brokers find clients by holding seminars and workshops in the community. Advertising in magazines aimed at entrepreneurs is another way to attract clientele. In addition to building a client base, franchise brokers must also assemble a portfolio of franchises to offer clients. This involves contacting companies and establishing a relationship in an effort to including the company as a potential offering.
Working With Franchises
Going the independent broker route may take some time to gain momentum. Working directly for a corporation may help an individual get up and running faster. A franchise broker working directly for a corporation represents that business only and looks for clients to buy franchises. An example of this would be someone working as a broker for McDonald’s corporation which is a large seller of franchises. The individual would only work with clients looking to franchise a McDonald’s restaurant. They would vet the client, i.e. make sure that they have the available finances and they would explain to them all of the legal implications of franchising. Starting out this way allows someone to gain experience through working with an established corporation.
Pitfalls of Franchise Brokering
If you find the idea of franchise brokering tempting, don’t quit your day job just yet. It may take some time to build up a clientele and a base of franchises. Starting out on a part time basis is one way to keep income coming in while you build your business. Income is commission based in the franchise business, therefore budgeting is imperative because there will be periods of income inactivity. Another consideration of franchise brokering is deciding to become an independent broker or one that works for a larger firm or corporation. Prospective entrepreneurs may feel hesitation about using a broker working for an agency or corporation because they feel that their best interests are not being served. Independent brokers have the options of staying neutral and presenting only opportunities best suited to the client’s financial needs.