More Franchises Does Not Mean More Deals
A very common misleading claim made by broker groups and their recruiters are, “we have the most franchisors, therefore you have a greater chance to close deals”.
Yes having a robust portfolio of represented brands is important but has much less impact on a broker’s success than they would like you to believe. In fact with many groups a good 50% of the brands in their network never get a referral from a broker.
Two of the most productive franchise broker companies in the industry are FranChoice and The Franchise Consulting Company. These companies are not “broker training for sale” businesses but more invitation only and have some great brokers. They work with a fraction of the number of brands someone like FranServe does yet produce more.
To take it a step further, most great franchise brokers tend to focus 90% of their time and energy on the same 15-20 brands with the occassional one-off. They know the franchise, they know the team behind it, they know how to promote it and know how to market it.
Good franchise brokers do not get good because they are hunting and pecking through the database for their trusting clients.
Since most broker groups charge these franchisors hefty annual fees to be part of the network the one that actually benefits the most from having the most brands is the group, not the brokers.