How Much Can I Make as a Franchise Broker?
We do not give earnings information, because our brokers are independent business owners and do not report financial information to us. We are not even allowed to give information on certain brokers and their earnings according to the Federal Business Opportunity Law for disclosing earnings information. The law states that if you give earnings information on a few people, you have to explain what percentage of people, who have bought the business opportunity in the past, earn the same amount. Because we cannot provide a percentage, we are not allowed to quote any numbers of what brokers have achieved.
We are currently developing systems to be able to provide this in the future. That process will take some time, though.
However, you can ask the brokers directly and they are permitted to give you that information.
We understand that this is one of the most important parts of your decision making process. Therefore we have collected public statistics to help you with this.
- Average Franchise Fee is 20-50k according to Wikipedia.
- Average broker commission is 50% of the franchise fee according to Wikipedia.
- In a sampling of Franchisors who participated a survey, the average broker commission they paid for a franchise sale is $20,000 according to Franchise Update.
- Information published from a national CRM system with over 100 franchisors’ company statistics tracked the follow results from their Franchisor sales team.
- Average closing ratio from a lead portal site is 1%.
- Average closing ratio from a lead portal with the site our vendors purchase from is 5%.
This is different because it is a Franchisors sales teams directly not broker sales.
- There are no published statistics on Broker sales other than a sampling of 126 Franchisors surveyed at the last Franchise Update (Issue IV, 2011) conference where in that sampling 17% of Franchisor sales came from Brokers.