Is there Licensing Requirements to be a Franchise Broker?
A very common question asked by those exploring the franchise broker opportunity is are there special licensing requirements? The answer is no. Unlike real estate or insurance there are no state or federal requiements for this business. Will that ever change? Maybe but currently there are not.
Now that being said, there are 2 states in the US that do require a franchise broker registration. Those are the state of Washington and the state of New York. These registrations are some simple paper work and a fee of $100. These states do not approve or disapprove your registration just require that it be on file. In addition these registrations are required only under one of the following conditions:
- You reside in one of these states
- You are working with franchisors that are based out of one of these states
- You are working with potential investors in one of these states.
Many franchise brokers actually skip that whole registration with these states and just focus their business on the other 48 states. Unless you live there that is really your decision.