We all look for professional services when we want to undertake a major financial decision. When you’re looking to buy a house, you look for a realty agent. When you’re looking to buy a car, you look for a car salesman. When you’re looking to plan your finances, you look for a financial consultant. So naturally, when looking to invest in a franchise, the inclination is to look for a professional who comes in the role of a franchise broker. While going down this road has a few advantages, some caution must also be exercised.
Help You Gain A Basic Understanding Of Franchising
Franchise brokers can provide you with an elementary knowledge of franchising, not to mention binding financial and legal commitments. In effect, they provide insights into the realities of becoming a franchisee and prepare you to take on what comes next.
Some franchise brokers might not be sufficiently qualified or experienced to educate propects. Furthermore, they might not even be interested in providing "free" advice or knowledge, rather they focus on a "best buy, must buy" attitude.
Let You Explore Multiple Franchise Opportunities With One Touch Point
Franchise brokers will typically have a selection of franchise brands at their disposal. Coupled with in-depth knowledge of each concept, they are able to provide insights into the business workings of the franchise concepts you choose to enquire for. Instead of setting up individual meetings and talking to the brands one-by-one, engaging a franchise broker provides the opportunity for you to understand several options all at once.
The opportunities that can be explored with franchise brokers could be limited only to franchises that had engaged them for sales representation.
Have Your Expectations, Needs & Wants Matched With A Suitable Investment Option
Franchise brokers listen to what you are looking for with regards to investing in a franchise concept and try to match that with suitable opportunities. Ultimately, they are there to guide you through the franchise selection process and offer up franchise opportunities that realistically fits your investent quantum, needs and wants.
Franchise brokers will only market and offer franchises that had appointed them for sales representation. In order to convert a prospect to a franchisee, some franchise brokers might hard-match or hard-sell a certain franchise which may not necessarily be the best fit for prospects.
Get You Prepared For The Meeting With The Franchisor
Franchise brokers can prepare you to meet with franchisors. One of the most significant aspects they help in this way is to prepare you ask the right questions. Furthermore, they could convey your thoughts to the franchisor before setting up a meeting, and this results in a productive setup for initial discussions and negotiations.
Franchise brokers, in order to make the sale happen, could intentionally avoid certain key discussive topics or issues or even provide misleading facts. Whatever the case, prospects must keep in mind that they want to acquire a franchise, not being sold a franchise.
Attention To Key Points In The Franchise Agreement
Franchise brokers know how to read and understand franchise documents, especially the legal contract which comes in the form of a franchise agreement. They are able to explain industry terms and highlight key points within the agreement that could save you much effort, time and most importantly, confusion.
Although franchise brokers will help you grasp a better understanding of the franchise agreement, you still need to engage a franchise specialist laywer to vet the agreement and protect your interests.
Bonus: You Don’t Pay For The Broker’s Servics!
The best part about engaging a franchise broker to find you that perfect franchise opportunity is you don’t have to pay for their services. Franchisors do instead.