The Best & Worst Things About
Being A Franchise Broker
Some people think I must be nuts to write an article like this
but frankly I don't care. When I joined the ranks of franchise brokers
I was told all about the great things this career offered but was
told nothing about real challenges and realities that came with
this business. Being a franchise broker has allowed me to live in
a beautiful home, drive the car I want, send 3 kids to private school
and for the most part balance my professional life, family life
and leisure life in a way that most people dream of. That being
said, I'll be the first to say that being a franchise broker is
not easy and is not for everyone. If you are considering a career
as a franchise broker take a few minutes to consider and weigh the
good and the bad to decide if it's something that is truly right
for you.
The Best Things About Being a Franchise Broker
- Very handsome commissions. I've spent as little as an
hour or two with a client and ended up making as much as $25,000
on that deal.
- A fantastic lifestyle business. I very rarely miss a
single school function with any of my kids. I attend Scouts with
my son on a weekly basis. I take my daughter to theater class
once a week. My work does not dominate my life by any means and
to the best of my knowledge have never lost a franchise deal due
to this.
- Low initial investment. Like many brokers, I learned
of this opportunity when looking for a franchise. Instead of investing
the $50k - $200k many franchises require I invested about $20k
and hit my break even point in less than 3 months.
- I work comfortably. When I meet with clients face to
face I always try to look professional but I'll be honest, I'm
most comfortable in a pair of jeans. Since most of my business
is conducted via email and telephone I wear what I want most of
the time.
- I work from home. Not everyone enjoys working from home,
sometimes myself included, but I don't spend a lot on gas, I don't
fight rush hour traffic and I work a more convenient schedule
thanks to being able to utilize a home office instead.
- I've learned a TON about franchising. Putting the money
I've made aside, I have gained a wealth of information and contacts
about and throughout the franchise industry. If and when the day
comes that I do want to buy myself a franchise or master territory
my chances of success are exponentially greater due to what I
know about the industry.
- The franchises go to work for us. Once we introduce a
candidate to a potential franchise it becomes the franchisors
job to really "sell" the concept. They handle the UFOC,
receipts, discovery day and agreement while we simply take a back
seat and help where we can.
The Worst Things About Being a Franchise Broker
- It is hard work. While it's not a physically demanding
job, nor is overly stressful it does require a lot of learning,
making contacts and persistence to really succeed in this business.
- Good candidates don't grow on trees. When I became a
franchise broker I was told, "just work your 50 leads a month
and deals will happen". No one ever told me that of those
50 leads many don't take my phone calls, don't return my phone
calls, are not qualified to own a franchise or were just day dreaming
when they submitted their request and were not truly serious.
If you don't come to terms with this it can wear you down real
quick.
- Deals don't happen overnight. A typical franchise deal
will take anywhere from 4 - 12 weeks to come together. While you
may only speak to a candidate once or twice a week through this
period, you must have the patience and financial ability to survive
the typical franchise sales cycle. I've worked with candidates
for over a year before I ever made a nickel from my efforts.
- Some franchises are better to work with than others.
When I joined my franchise organization I was thinking "wow
- 250 franchises - this will be great." In a matter of months
I learned that some of those franchises are better than others
in terms of opportunity and in terms of working with as a broker.
While most franchises are very accommodating to brokers and their
candidates there are several that make it all but impossible to
work with.
- Deals can be lost for reasons we cannot control. When
you are in sales you have a lot more control over whether you
win a deal or not. In franchise brokering we don't have as much
control and sometimes deals you thought were in the bank fall
through for reasons we cannot control.
- Candidates can slip through your fingers. Many times
as a broker I have suggested a franchise to a candidate only to
have that candidate take my suggestion, go right to the franchisor
and fail to mention that I had anything to do with the referral.
Depending on the franchise you are working with this can sometimes
cost you thousands of dollars in commissions you deserve.
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