What Are The Benefits Of A Franchise Broker?

When it comes to franchise sales, one of the most important questions that you can ask yourself is, “What Are The Benefits Of A Franchise Broker?”.  The reason for this is that a massive amount of franchise sales come from franchise brokers.  Many franchise broker networks have sold thousands of franchise units and have helped franchisors go from almost no franchise units to hundreds.

Our main focus here at Lead PPC is franchise leads and franchise lead generation.

So, let’s go through what we consider to be some of the benefits of hiring a franchise broker…

 

Benefit #1: Increased Sales Revenue

Show me the money, baby.

If you’re looking for help with franchise sales, the top types of companies out there that can help you are:

1. Franchise Broker Networks
2. Franchise Ad Agencies (such as us here at Lead PPC)
3. Franchise Sales Organizations (FSOs)

Franchise brokers will drive pre-qualified, warm candidates for you to interview and see if they will be the right fit for you.  Keep in mind though, that it typically costs about $22,000-$40,000 per sale that you end up paying for sales that come from franchise brokers.

Franchise ad agencies work on your behalf to help drive leads that your sales team then follows up with and seeks to close.  It usually costs about $5,000-$15,000 per sale in ads, so it’s a great mix to have in there in addition to working with 1-3 franchise brokers.

Franchise sales organizations follow up with leads from both franchise brokers and franchise ad agencies so that you don’t need anyone else on your staff to close new franchise deals.  It’s a done-for-you, white glove type of a situation.

 

Benefit #2: Increased Franchise Sales Knowledge

Many franchise brokers have spent an entire lifetime selling franchises, as they can typically work from home, set their own schedules, and still make more money that selling cars or sometimes even selling software because you are literally selling entire businesses.

Time and again, I’ve continued to be impressed by the industry knowledge that franchise brokers have.  If you can find a handful of franchise brokers that love your brand and are good at selling it, it can literally take your franchise from a few company owned stores to hundreds of franchised units.

This knowledge is especially helpful for newer franchisors who are just getting started (recently filed FDDs, haven’t sold very many franchise units).  Even with large franchisors, sometimes finding the right franchise broker with the right connections can open up knowledge.

 

Benefit #3: Reduced Employee Expenses

Sometimes, it can make the most sense to hire employees in-house to do certain tasks.  But other times, it can make the most economical and strategic sense to outsource your needs to vendor like a franchise broker.  The most important thing you can do as a franchisor is to build your brand and build your company.  The more talented people that you can bring on board to help you with your workload so that you can focus on your core competencies, the better.

 

Benefit #4: Expert Guidance

A franchise broker’s in-depth knowledge of the franchising sector is their most valuable attribute. They understand the intricacies of franchise agreements, the strategies for franchise expansion, and the key factors that make a franchise successful. This expertise enables them to provide invaluable guidance to potential franchisees, helping them make informed decisions about their investments.

 

Benefit #5: Wide Network of Contacts

Franchise brokers have extensive networks within the franchising industry. They are in regular contact with a multitude of franchisors operating in different sectors. This vast network allows brokers to match potential franchisees with franchisors that best suit their interests, financial capabilities, and business goals.

 

Benefit #6: Time and Cost Efficiency

The process of finding the right franchise opportunity can be time-consuming and costly. With a franchise broker, this process is streamlined. They can swiftly identify suitable franchising opportunities, reducing the time and effort required by potential franchisees. This efficiency can also translate into significant cost savings.

 

Benefit #7: Negotiation Skills

A franchise broker’s negotiation skills can be a significant asset. They are well-versed in the art of striking a balance between the needs of the franchisee and the franchisor. Their expertise can help secure terms that are favorable for both parties, ensuring a mutually beneficial agreement.

 

Benefit #8: Aftercare Support

The role of a franchise broker doesn’t end with the signing of the franchise agreement. Many brokers continue to offer support and advice to franchisees, aiding in their business development and success. This ongoing support can be instrumental in the smooth running and growth of the franchise.

 

Need Help?

If you would like to speak with us about potentially having us help drive quality franchise leads for your franchise please fill out our Contact Us form.

We are a boutique franchise marketing agency / franchise ad agency that specializes in franchise marketing and franchise advertising via PPC (Google Ads + Meta Ads).

Additionally, if you need help with franchise sales or with finding a solid franchise broker, we would be more than happy to share our opinions with you on the subject.  Thanks!