Who is a Franchise Brokers Competition?
There is very low competition in the Franchise Broker marketplace. Data suggests there are only a couple thousand franchise brokers in the industry and, of that number, only about 800 of them are actively working full time in the business.
Many have started their own franchise after falling in love with a franchise they represent. Some do this part time in conjunction with other endeavors. There are also brokers who begin the business and retreat based on what is happening in their life. Because of the flexibility this business allows, there are many variations of how it is operated.
The type of person that is drawn to this business has usually already achieved success in their previous careers. They are mature business professionals. They often have several other businesses and have a drive for entrepreneurialism.
Being a Franchise Broker creates a high level of freedom to manage the business in a way that suits their needs
With that being said, there are three forms of competition a franchise broker will face:
1. CANDIDATE FINDS A JOB
There are huge advantages to being a business owner above being an employee. We focus an incredible amount of energy and training on this topic. If you are educated and passionate about business ownership this will be a competitor you won’t need to worry about.
2. CANDIDATE BUYS FROM ANOTHER FRANCHISE BROKER
If you are a member of the Franchise Brokers Association, the tools and resources you are able to provide to a candidate will blow any competition out of the water. NO ONE in the industry does what FBA brokers do. NO ONE in the industry has the tools FBA brokers have and NO ONE in the industry has access to the FLS if they are not a FBA broker. We will give you a powerful and compelling argument that will make the decision to use you a “no brainer” for the candidate.
3. CANDIDATE BUYS FROM A FRANCHISE YOU DIDN’T SHOW THEM
The only time this scenario would occur is if your candidate has not been honest with you in telling you what franchises they are working with or the franchise is not in the broker inventory. We teach you how to create a very open and honest communication with the candidate and how to establish their trust and confidence in working with you. This is tricky. You must be properly trained on this. Once you have mastered this training, you will rarely lose a candidate to another franchise. If they are out of the inventory, there are ways to add Franchisors relatively quickly and easily when you have the power of the group behind you.
With 27.7 million businesses in the US and only 700,000 of them franchises, franchising has a long way to go to hit market saturation.
And with nearly double the chance of succeeding, franchising has gained incredible strength. It’s a good thing too because franchising helps to mitigate risk within a small business. This gives the people who join franchising a sense of security in their decision. It is easy to promote proven ways of succeeding.
Success is not a mystery. There is a simple path to achieve it and franchising has that path and map for the journey. Our brokers are the tour guide and go on the adventure with the candidate.