Roles of Franchise Brokers and Consultants
Roles of Franchise Brokers and Consultants
Finding the perfect franchise or business opportunity can be a daunting task -- there are literally thousands from which to choose and all (according to their web sites) are the opportunity of a lifetime.
You can get help in your search for the perfect franchise or business opportunity in the form of franchise/business brokers and franchise consultants. They can help identify opportunities that fit your needs and goals, decrease your research time, and guide you through the process. Expert advice can be invaluable, especially if this is your first time (which is why Franchise Genius is here).
Having said that, it's really important to know your consultant's business model. Their ultimate goal is to sell you a business. Manage them properly and you'll both be happy in the end.
Franchise/Business Brokers
Franchise/Business Brokers are very much like real estate agents. They list businesses for sale, promote the business to generate qualified leads, and help the business owner set an appropriate price. They represent, at least initially, the business owner. While they may have several businesses listed at any given time, giving you more choice and leeway, they receive a commission when they sell a business.
There are several benefits to the experience and expertise of a broker. First, they learn about you and your needs, presenting opportunities that match your lifestyle, interests, and financial goals. This can narrow the search considerably, saving you time and money. Second, they can be excellent information resources, providing names of franchise attorneys, area demographics, and key contacts within an industry. Tapping into their Rolodex can help you in many ways both during the process and down the road.
Keep in mind that the ultimate goal of a franchise broker is to sell a business. Most are very good at finding a balance between the needs of owners and prospects, but be aware that the sooner you sign, and preferably with a business that they have listed, the sooner they make their commission.
Franchise Consultants
Franchise consultants offer many of the same services as brokers, though business brokers, by definition, will help you purchase an existing business. Consultants, by contrast, can help you evaluate any business opportunity, particularly franchises, whether it is currently operating or not.
Franchise consultants are more likely to be paid on a fee-basis rather than a commission. They are more like a purchaser's representative, helping you to narrow your search, ask the right questions of the right people, and helping you evaluate your franchise agreement.
A consultant should have an understanding of the reputation of a franchise system within its industry and help you to ask the right questions so that you get an understanding too. They can also help you with financing options and navigating the waters of signing with a franchise company.
Hiring an independent expert can be a good move for anyone looking to own a franchise or purchase an existing business. It's a big decision, one with risks and, for most, first-time/one-time purchasing skills (a single-unit operator with no experience only has to go through the real estate process one time). Their experience can speed your time to market and therefore help you recuperate your costs sooner. They can also offer you more choices, tailored to your needs and goals.
To get the most out of your external expertise, you need to manage them like you would any other employee. Be clear in your goals, set expectations and time lines, and focus on what is important to you, not necessarily what is most expeditious for them. The result should be less work for you and a more rewarding fit with your new business.
Roles of Franchise Brokers and Consultants - To learn more about this author, visit Bob Richman's Website.
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Should I use a Franchise/Business Broker in My Search? What About a Franchise Consultant?
Finding the perfect franchise or business opportunity can be a daunting task -- there are literally thousands from which to choose and all (according to their web sites) are the opportunity of a lifetime.
You can get help in your search for the perfect franchise or business opportunity in the form of franchise/business brokers and franchise consultants. They can help identify opportunities that fit your needs and goals, decrease your research time, and guide you through the process. Expert advice can be invaluable, especially if this is your first time (which is why Franchise Genius is here).
Having said that, it's really important to know your consultant's business model. Their ultimate goal is to sell you a business. Manage them properly and you'll both be happy in the end.
Franchise/Business Brokers
Franchise/Business Brokers are very much like real estate agents. They list businesses for sale, promote the business to generate qualified leads, and help the business owner set an appropriate price. They represent, at least initially, the business owner. While they may have several businesses listed at any given time, giving you more choice and leeway, they receive a commission when they sell a business.
There are several benefits to the experience and expertise of a broker. First, they learn about you and your needs, presenting opportunities that match your lifestyle, interests, and financial goals. This can narrow the search considerably, saving you time and money. Second, they can be excellent information resources, providing names of franchise attorneys, area demographics, and key contacts within an industry. Tapping into their Rolodex can help you in many ways both during the process and down the road.
Keep in mind that the ultimate goal of a franchise broker is to sell a business. Most are very good at finding a balance between the needs of owners and prospects, but be aware that the sooner you sign, and preferably with a business that they have listed, the sooner they make their commission.
Franchise Consultants
Franchise consultants offer many of the same services as brokers, though business brokers, by definition, will help you purchase an existing business. Consultants, by contrast, can help you evaluate any business opportunity, particularly franchises, whether it is currently operating or not.
Franchise consultants are more likely to be paid on a fee-basis rather than a commission. They are more like a purchaser's representative, helping you to narrow your search, ask the right questions of the right people, and helping you evaluate your franchise agreement.
A consultant should have an understanding of the reputation of a franchise system within its industry and help you to ask the right questions so that you get an understanding too. They can also help you with financing options and navigating the waters of signing with a franchise company.
Hiring an independent expert can be a good move for anyone looking to own a franchise or purchase an existing business. It's a big decision, one with risks and, for most, first-time/one-time purchasing skills (a single-unit operator with no experience only has to go through the real estate process one time). Their experience can speed your time to market and therefore help you recuperate your costs sooner. They can also offer you more choices, tailored to your needs and goals.
To get the most out of your external expertise, you need to manage them like you would any other employee. Be clear in your goals, set expectations and time lines, and focus on what is important to you, not necessarily what is most expeditious for them. The result should be less work for you and a more rewarding fit with your new business.
Roles of Franchise Brokers and Consultants - To learn more about this author, visit Bob Richman's Website.
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Anne BarrAnne Barr has over 26 years experience in sales and marketing, six years as a franchisee. She has assisted over 367 business owners and purchasers to achieve their goals in career change, transition and exit strategy. She holds the designation of Certified Franchise Executive from the International Franchise Association, Certified Business Intermediary from the International Business Brokers Association and Board Certified Broker from the Texas Association of Business Brokers. Anne is active in professional organizations, networking groups and volunteers for non-profit entities. As owner/operator of four successful businesses, Anne has proven people skills and enjoys helping clients find the right "fit" in business ownership. Visit www.FranchiseOpportunitySpecialist.com for more information about me and my company. - Visit Anne Barr's Website |
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John PowerJohn Power, founder of Biltmore Franchise Consulting, has extensive experience developing and marketing franchises and business opportunities. He has been in and around franchising for over twenty years. From 1980 through 1990 he conceptualized, organized, and developed the American Video Association. He grew AVA to 2,000 national members, before selling the company it 1990. It was later merged into another home video marketing company. From 2000 to 2005 he worked as a contract marketing and human resources consultant to several local and national companies. In 2005 Mr. Power began working as a franchise development consultant on a full-time basis. Since that time he has helped more than three dozen companies initiate and develop their franchising program. He notes that there are many companies interested in developing a franchise program, and who need his specialized assistance. Mr. Power is a “hands-on” franchise consultant. He said, “I am the ‘nuts and bolts’ person who tends to the details for my clients.” Mr. Power holds a B.S. degree with a major in Marketing. See: www.biltmorefranchise.com You may contact Mr. Power at: jpower@biltmorefranchise.co - Visit John Power's Website |
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David BarrDavid Barr is the President of Venture Opportunities, Inc. David has been a professional business broker/intermediary since 1980 focusing on General Business Brokerage and Mergers and Acquisitions representing client transaction value from $400,000 to $20,000,000. Mr. Barr has handled the sale of over four hundred and fifty companies. David earned a university degree from the State University of New York majoring in economics and business. David holds the Mergers and Acquisition Master Intermediary and the Certified Business Intermediary designations from the International Business Brokers Association. He is also a Senior Business Analyst and a Texas licensed Real Estate Agent. For more information about David and Venture Opportunities, visit www.bizdealmaker.com. - Visit David Barr's Website |
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John BrennanJohn Brennan Ed.D. Dr. Brennan is President of Interpersonal Development, LLC, a training and development firm. Interpersonal Development has provided sales training and coaching to more than 3,000 sales reps from over 100 companies. A native of Australia, Dr. Brennan received his doctorate from the University of Rochester. His dissertation researched the effectiveness of Behavioral Modeling Technology in training people in interpersonal skills. While he has spent most of his career designing or delivering training, he was also a Vice-President of Sales of a training and development franchise with operations in 25 markets. Dr. Brennan has designed and delivered sales training in North America, Asia, Europe, Australia and the Middle East. He has been a guest speaker at numerous national and regional professional conferences. When Microsoft wanted Best Practices articles on sales for their web site, they called Dr. Brennan. The results are at http://office.microsoft.com/en-us/FX011387391033.aspx His firm’s clients have included Volvo, The Prudential, Merrill Lynch, Eastman Kodak, Gannett, Equifax Europe, the Economist Group and countless small businesses. - Visit John Brennan's Website |
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Jay Kubassek(Jay's Full Bio: EvanCarmichael.com/jaykubassek) In five years, Canadian-born entrepreneur Jay Kubassek went from selling mufflers at a Midas franchise to revolutionizing Internet marketing with the 2004 launch of CarbonCopyPRO, a online marketing education company, now worth over $20 million with customers in over 160 countries.
As an independent film producer, his upstart film fund Aliquot Films is currently producing a films with Spike Lee and Abel Fererra (starring Ethan Hawke and Dennis Hopper.)
Jay's entrepreneurial spirit is irrepressible. He’s the owner of five companies, a professional speaker and trainer, international real estate developer/investor, extreme sport enthusiast and emerging philanthropist. Jay resides in NYC with his wife Jamie, son Milo and dog Cooper. Visit Jay's official website: www.JayKubassek.com - Visit Jay Kubassek's Website |
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