What does a Franchise Broker Do?

Franchise Broker Leads

So what exactly does a franchise broker do? While some call themselves brokers, others consultants, others advisors, even coaches they all do pretty much the same thing.

Franchise brokers are similar to business brokers, real estate agents or recruiters yet focus on the franchise industry. They basically work with people looking to go into business for themselves or acquire additional businesses, specifically franchises.

Franchise brokers have agreements with anywhere from dozens to hundreds of franchisors who pay a referral fee for new franchisees that are introduced by the broker. Through various marketing and lead generation techniques a broker will seek, qualify and suggest certain franchise brands. Provided their prospect is serious and meets a franchisors qualifications the broker will introduce them to the franchisor and then assist through the discovery process.

When their prospect becomes that franchisors franchisee the broker is paid and generally paid quite handsomely! Referral fees for franchise brokers commonly range from $15,000 to in excess of $50,000 per transaction making it a very lucrative opportunity for the right person.

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