What is a Franchise Broker?
The simplest explanation is relating what a franchise broker does to what a real estate agent does.
A real estate agent inputs a prospective home buyers criteria into their MLS system to find houses that match their needs. Then, they make arrangements to show the buyer the house, check out the neighborhood and see if they would like the buyer to put in an offer.
The real estate agent will help connect the buyer to a lender so they can fund the purchase, a home inspector to ensure the house is safe and doesn’t have serious problems under the surface, and a title company to ensure the person selling the house to the buyer actually owns it without any liens on it. The real estate agent informs the buyer if the offer is approved and then helps the buyer to make sure everything is checked and ready for closing on the house.
Franchise Brokers do the same thing, but for franchises. We use a FLS system (FranLink System). We help find the franchises that match the prospective franchise buyers criteria, connect them with funding sources, an inspector (aka an attorney and an accountant specializing in franchising), educate them on the franchise compared to its competition, ensure the buyer has done the proper research, make sure the application is approved by the Franchise and assist the buyer all the way to the closing table.
Just like a real estate agent is paid by the seller, franchise brokers are paid by the seller too. The Franchisors pay the broker out of their marketing budget when they obtain high quality Franchisees for their system. A franchisor can not charge more or less for the franchise when using a franchise broker, creating a win win for all parties because the broker can remain objective, the franchise talks to the best buyers for their franchise and the buyer makes an educated choice on the franchise that will fulfill their goals and desires.