Which Groups Do The Most Deals?
A very common question among the industry, both franchise brokers and franchisors alike are which groups are the most productive, ie: do the most deals. This actually varies for particular franchises… Some will say Business Alliance sends me tons yet we barely hear from FranServe and vice versa. A lot of it depends on the brand and the relationships they have with individual brokers.
That being said, as a whole FranChoice is probably the most productive group overall. Much of this is due to the fact that their brokers have been in the business longer than most and the fact that they are a truly branded group that focuses a great deal of their marketing on generating in bound inquiries vs. positioning themselves simply as a franchise broker recruiting and training program. A brand can be a powerful thing but FranChoice is really more of an invitation only organization and is not in the business of selling the broker opportunity. They also take one of the highest royalties in the industry.
Of the “franchise broker opportunity” groups we would have to say that IFPG probably does the most deals, partly because they are a very large network but also because there are a lot of brokers who actually started with and belong to other groups yet are also members of IPFG. Wait what?
Yes, IFPG has a lot of members that are also part of FranServe and Business Alliance! Why would someone belong to more than one group? The answer is simple… Money! Here is how that works…
Let’s say you are a member of FranServe or BAI, groups that charge 5% to 10% royalty on your commissions yet IFPG only charges about $200 per month and you are doing more than 3-4 deals a year you actually come out money ahead to pay to be an IFPG member, run your deals through them and avoid the royalties. Simple math… $100k in deals means 5% ($5,000) to FranServe or 10% ($10,000) to BAI, it is cheaper to pay IFPG the $2,400 – $3,000 per year to be a member.
All broker groups have their share of super successful brokers just like all have their laggards but this is a common trend in the industry which ultimately gives IFPG the natural edge when it comes to most deals done.