FBA’s Distinctive Framework
Module 6 • 4 Lessons
List of Modules
Module 0 • 1 Lesson
Module 1 • 1 Lesson
Module 2 • 1 Lesson
Module 3 • 1 Lesson
Module 4 • 2 Lessons
Module 5 • 8 Lessons
Module 6 • 4 Lessons
Module 7 • 2 Lessons
In Module 6, step into the unique ecosystem of the Franchise Brokers Association. Here you’ll familiarize yourself with the diverse brands in our network, and understand what sets our training approach apart. Also, get insight into the significance of systematic operations in Franchise Brokering, as well as the nuances of franchise fees.
Lesson 1: Categorizing the Brands in Our Network
As a potential Franchise Broker with us, you’ll gain access to a diverse assortment of brands – we work with over 700 franchises.
These brands are categorized and cater to a myriad of business owners and investment types, ranging from multi-unit to single-person operations, and from flexible to strict structures, and more.
However, it’s important to remember that what works for one entrepreneur may not work for another. Thus, a Franchise Broker’s main task is to comprehend the franchise candidate’s needs, goals, skills, and competences, and match them with a business that best aligns to them.
The franchise brands we work with are categorized into FIVE types, according to the Zorakle Profiles system:
- Entrepreneur Brands: These are very young franchises that heavily depend on their founders for growth. They offer flexibility and influence but come with fewer resources and potential challenges.
- Partner Brands: These are young but growing franchises that offer excitement and opportunity due to their momentum and availability of licenses.
- Plug and Play Brands: These are developed franchises that offer resources, support, and scalability. They’re often referred to as the franchising “sweet spot.” However, as they grow, territories may become limited and more structured.
- Empire Brands: These are the industry giants, with limited territories, expanding mainly through international locations or existing owners buying additional units. They have rigid systems with many controls in place.
- Hybrid Brands: These are affiliate companies expanding under established parent companies. They offer the infrastructure of a larger system coupled with the localized feel of a smaller one.
At FBA, we mostly focus on Partner, Plug and Play, and Hybrid models, as they fit well with our business model. While Empire brands often don’t align with our business due to territory limitations, and Entrepreneur brands are more risk-prone, they are also available for a specific type of candidate.
Contrary to common belief, there’s a plethora of high-quality franchise brands that are not well-known. As a Franchise Broker, it’s critical to help buyers look beyond their knowledge of a brand name. There’s a lot they don’t know – a brand is so much more than just a name or number of units. It’s not just about hype, and seeing it around your area doesn’t mean anything as to the success of the business or its growth.
That’s why we invest considerable effort into understanding the brands, their merits, history, owner experiences, revenue potential, and business models.
1-1 Reflection Questions
- How comfortable are you with the idea of working with a broad range of franchises?
- Do you agree with the emphasis on looking beyond brand recognition when helping prospective franchise buyers? Why or why not?
- What aspects do you find most exciting about helping potential franchise owners find the best fit for them among a diverse range of brands?
Lesson 2: How FBA’s Training Program Differs
Traditional training methods are often boring.
Have you ever experienced this? Whether in school, onboarding in a new job, etc.
Although the program is often well-intended, traditional learning models come with the risk of overwhelming the participant – resulting in ineffective absorption or application of the information.
At FBA, we are highly aware of this. Drawing from nearly two decades of experience, we have designed our training program to be engaging and effective.
Our program follows a workshop model, which actively involves Franchise Brokers in practical tasks related to their business. Instead of merely acquiring knowledge, Brokers in our program get to apply what they learn by actually setting up their business, defining their focus, and getting hands-on experience with various systems.
This experiential learning, enriched with real case studies, makes our program more meaningful and relatable.
Our training program is designed to build you and your business and is equipped with:
- Training modules: These cover various aspects of franchising, providing a strong foundational understanding
- In-person classroom time: Face-to-face interactions foster a deeper understanding of the topics and offer opportunities for live Q&A sessions
- Practice work: Practical exercises allow you to apply what you learn, helping consolidate knowledge and skills
- Guided workshops: These offer hands-on experience in a controlled, mentored environment
- Strategic brainstorming sessions: These collaborative meetings allow you to share ideas and develop strategies with peers and experts
- Technology setup and support time: Dedicated time for getting comfortable with necessary tools and systems, with expert support at hand
The end goal of our program is to ensure that you, upon completion, are ready to confidently and effectively engage with potential franchise buyers.
Starting a business can be a daunting task, but with our program, you can embark on this journey knowing you have a robust support system around you. This support not only makes the process safer and more manageable but also more enjoyable.
2-1 Reflection Questions
- How do you feel about the experiential learning approach of FBA’s training program?
- Can you identify past experiences where traditional learning models overwhelmed or bored you?
- Do you feel the balance of training modules, in-person time, practice work, guided workshops, brainstorming sessions, and technology setup time is well designed to meet your learning needs?
Lesson 3: The Importance of Systems in Franchise Brokering
In any business, elements like systems, machinery, and employees contribute to increasing personal work capacity and overall output.
However, in the Franchise Brokering business, machinery and employees aren’t usually in the mix. The key to expanding and scaling your earning potential lies in leveraging systems that can do the work for you.
3-1 Why Systems Matter
The importance of a well-designed system is often underestimated, yet it can revolutionize your business experience and be the primary driver of success.
In fact, with the right systems and processes in place, a franchise often outperforms independent business owners.
For Franchise Brokers, an efficient system encompasses several aspects:
- Marketing
- Messaging candidates
- Task creation
- Day organization
- Calendar management
- Communication creation based on candidates’ stages in the buying process
- Team communication
- Access to group-conducted research
- Pipeline management
- Reporting
(Think back to the Broker Operating System – BOS)
3-2 The Impact of Operating Without a Complete System
The importance of a well-designed system is often underestimated, yet it can revolutionize your business experience and be the primary driver of success.
In fact, with the right systems and processes in place, a franchise often outperforms independent business owners.
For Franchise Brokers, an efficient system encompasses several aspects:
- Marketing
- Messaging candidates
- Task creation
- Day organization
- Calendar management
- Communication creation based on candidates’ stages in the buying process
- Team communication
- Access to group-conducted research
- Pipeline management
- Reporting
(Think back to the Broker Operating System – BOS)
3-3 Identifying Key Indicators
By identifying key indicators for the business, we can pinpoint exactly where a Broker needs improvement. This eliminates guesswork and allows Brokers to confidently and directly address their growth challenges. Early insights into the scalability of the business and available opportunities are crucial for creating momentum and clarity – two indispensable elements for a successful business launch.
3-4 The Value of Systems – A Broker's Perspective
One of our top-performing Brokers, who has experienced both traditional and systemized business operations, emphasized the importance of systems by saying:
“It hurts your credibility when you don’t have the right type of information to send when there is a burning pain. The buyer needs you to help them feel confident, and these communications are so well-developed and effective that they regularly save deals. They improve your results and credibility. The buyer trusts you more, you are more credible, and you are much more efficient because of it.” – Amanda Vargas, FBA Franchise Broker and Trainer
3-5 The Role of Systems in Franchise Qualification
In qualifying a franchise, the most important feature to ensure consistency and scalability is its systems and technology. Robust systems reduce administrative errors, streamline processes, boost profitability, bring clarity, and pave the way for real success in a franchise.
So, as a Franchise Broker, the first test is this: do the systems of a business matter to you?
If you hesitated, it might be time to reevaluate your understanding of this business.
In franchising, systems DO matter. They are responsible for the consistency and quality of the business. Once you fully grasp this, you’ll be better equipped to convey this critical insight to your potential franchise buyers.
3-6 Reflection Questions
- Do you have any experience with using systems in your work to streamline tasks and increase efficiency? If yes, how was your experience? If not, how comfortable are you with adapting to such systems?
- How do you currently handle the organization and management of your day-to-day tasks?
- From a client perspective, how important do you think consistent, timely, and well-developed communication is for building credibility and trust?
Lesson 4: What Does the Franchise Fee Cover?
Let’s do an exercise: put yourself in the shoes of a potential franchise buyer…
When considering a franchise opportunity, you might find yourself wondering about the value you receive from your franchise fee, which generally ranges around $42,000 – $44,000.
4-1 Here's the breakdown of what the Franchise Fee covers:
- Marketing Expenses and Buyer Matching: How much do you think it costs to find the right franchise buyer for a system?
Answer: tens of thousands of dollars – and it’s much harder for a franchise that only has one option to offer. Your franchise fee includes the cost of finding, qualifying, and engaging you as the right buyer. The fee also covers the cost of matching you to a franchise that suits your requirements and aligns with your personality and skill set.
- Access to the Franchise License: How much do you think it costs to build the franchise?
Answer: hundreds of thousands to millions of dollars in development costs. Your franchise fee grants you access to a tested and proven business model, and the efficient navigation through business processes and operations, using a blueprint refined over time.
- Initial Training: How much do you think it costs to create teams of high level executives to conduct your initial training?
Answer: tens of thousands of dollars. A crucial component of the fee is the cost of initial training, which can vary in length. It is comprehensive, encompassing opening processes, standard operation processes, marketing, employee recruitment, hiring, management, compliance, and much more. High-quality training positively impacts productivity and performance.
- Set-Up Services and Tools: How much do you think it costs to have tech teams and specialized resources to help you get set up?
Answer: tens of thousands of dollars. The franchise fee covers the cost of setting up your business, from arranging essential services to learning new systems like inventory, accounting, and point-of-sale systems.
At FBA, our 5-week Broker launching program is specifically focused on setting up services and system training.
- First Year Ongoing Support: What do you think the cost is for the first year of support for your new business?
Answer: This is the most costly and challenging expense for the franchise and costs tens of thousands of dollars. The first year of your franchise is often the most challenging, which is why the franchise fee also covers support during this critical phase. This includes access to a support team composed of various professionals for planning, strategy, marketing, training, tech support, customer acquisition, and sales. At FBA, we invest an average of 6 hours per week supporting each new Broker during their first year.
In summary, the franchise fee is a comprehensive investment that covers a range of services and support, all aimed at setting you up for success.
4-2 Reflection Questions
- What are your thoughts about the level of support and services provided for the franchise fee?
- As a Franchise Broker, how would you communicate the value of the franchise fee to potential buyers?
- How would you address a potential franchisee’s concerns about the cost of the franchise fee?