Beware Your Recruiter!
Recruiting in the franchise broker industry can be agressive and not always completely honest. After all, for some groups recruiters are paid thousands to get you to sign up! Below are some things to know when speaking to the person that reaches out to you when inquiring about the opportunity.
One of the most unfortunate aspects of the franchise broker industry is the misleading information given to you by the people you speak with when inquiring about the business. These recruiters earn anywhere from $4,000 – $6,000 to get you to join, can say nearly anything and once you pay your fee never have to speak to you again. Here are some cold hard truths about recruiting in the franchise broker industry.
Brian Felderstein with Business Alliance
If you have ever spoken to Brian chances are he has told you that he too is a successful franchise broker and just enjoys sharing the wealth… That we are aware of, Brian has never brokered a franchise in his life, has never funded his own marketing and has always made his living recruiting for BAI as well as a couple of other business opportunities.
When you speak with Brian ask for specifics as to which franchise brands he has made placements with. Brian is known for coming up with statements like, “well that group is going out of business, I make $250k a year as a broker, we are about to raise our rates so you better join now”… All things he has been saying for over a decade now yet BAI has never raised their rate of $19,900. Brian is a great recruiter but that we are aware of has never actually lived a day in the life as a true franchise broker. This does not mean that BAI may not be a great fit for you, but it will serve you best to speak to other BAI staff and brokers and not just base your decision on him.
Don Clayton with FranServe
Just when you thought Brian from BAI was aggressive, Don takes the cake and isn’t being completely honest even before his mouth starts moving.
Don is the “Vice President of Talent Acquisition” for FranServe and as seen in the screenshot of his company bio, he… “joined FranServe as a franchise consultant in 2012. He quickly became a Top Producer and developed a passion to make sure FranServe continues to be the industry’s best franchise consulting organization operating today.” It goes on to say “Don knows exactly what it takes to be successful as a franchise consultant, which is why he accepted the position of VP of Talent Acquisition, ensuring only the most qualified consultants join the FranServe family”.
This simply is not true! Don Clayton was hired off a Craigslist ad by a guy named Marc Stephens who at the time owned a group called The Franchise Select Group. Shortly after Don’s hiring, Marc merged with a guy named Tim Bleakley to form FranServe. Not only did Don never join FranServe as a consultant he was asked to sit on the sidelines while Marc convinced Bleakley to bring him on as a recruiter, which he eventually did. To make the story even more interesting, Don did make a placement with Money Mailer from a FranServe recruiting lead and Bleakley actually fired him. Marc convinced Tim to reconsider and he was reinstated as a recruiter. Yes, Don’s career with FranServe came that close to ending because he did actually make a placement! Bottom line is Don has NEVER really been a franchise consultant with FranServe, much less a top producer. He never paid $24,900 to join, never went through the broker training program and that we are aware of has never funded his own marketing… He is their recruiter and has been since the day he has been affiliated with FranServe. That is a far cry from making a living like most franchise consultants do.
Bottom line… FranServe or BAI may be great fits for you but chances are you will speak with Don or Brian when you explore them so before you plop down your $20k-$25k you probably want to dig a little deeper.
Simple questions you may want to ask either… How many franchise placements have you made this year? Franchises, not new brokers. Did you personally pay the fee to join and train? What is your personal marketing budget per month? As in how much you personally spend recruiting new franchisees? We may be off by a few dollars but the answer is $0, $0 and $0.
Luckily most of the other broker groups such as IFPG handle their recruiting in a more respectful manner. This doesn’t mean they won’t be aggressive but people like IFPG President Red Boswell and SuccessFran CEO Marc Stephens share a different philosophy… They continue working with you after the sale so over-selling to get you on board isn’t the best way to start a business relationship.
Learn more about becoming a franchise consultant!