Franchise Brokers Should You Use One

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					Franchise Brokers: Should You Use One?

There are many advantages and disadvantages to using a franchise broker
and chances are that you don't really need one anyway. There are plenty
of reasons why franchise broker's may want to help you out, but you'll
find out later on in this article that most of the time it will be
because of purely selfish reasons. If you have ever heard the expression
that "if you want something to get done then you should do it yourself,"
then that phrase definitely applies itself to this situation here.
Indeed, there are many situations where a broker may come in handy, but
chances are that you'll feel the same way and toss the franchise broker
idea out the window as well. On the other hand, though, there are also
some individuals who rely on franchise brokers for specific kinds of
information and if you're okay with dealing with a franchise broker then
more power to you! But here is a breakdown of what franchise brokers are
all about if you have not known about them previously:

The Idea of the Franchise Broker

Considering the fact that you are just even thinking about discussing
franchise options with a broker indicates that you at least enjoy the
thought of being able to kick and throw around ideas with someone other
than a personal friend or family member. Of course, the franchise broker
is an independent agent of the company headquarters itself and can tell
you a lot of useful information about owning a particular franchise
because chances are that they have dealt with them in the past anyway
when leading other prospective and future franchise owners to a specific
company as well. Speaking with a franchise owner, then, is a great way to
find out detailed information about the goings-on and inner workings of
how easy it is to work a franchise for a specific company.

Vested Interest

On the other hand it is also important to realize exactly why a franchise
broker may be tempting you to buy one franchise over the other, or at
least making it seem that way. Franchise brokers are usually able to
receive a hefty commission for the sales that they make and by leading an
individual to a specific company and selling those franchises may make
them sometimes as much as 50% of the franchise-owning fee. When speaking
with a franchise broker after realizing that, however, you may want to be
wary of why the broker is leading you to the most expensive decision.
Chances are that the more higher-priced a franchise opportunity is then
the broker will also get a higher commission as well! In essence,
franchise brokers essentially have a vested interest in which franchise
you choose because their whole salary and payoff rests upon how much you,
as the franchise owner, will be paying to get started!

As you can see then, franchise brokers can be a good thing if you are
totally clueless as to how franchise opportunities work and they can
certainly give you valuable information about owning a certain franchise
over the other. On the other hand, you may be better off looking for one
of the many franchise opportunities yourself if you see any hint of a
high-pressure salesman for the franchise broker you chose! But trying to
decide what franchise you buy should be one of the most enjoyable things
for a potential franchise owner anyway because it is the start of a brand
new business venture!

				
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posted:8/20/2012
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