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FRANCHISE BROKERS vs FRANCHISING CONSULTANTS

Written by: Ken Hollowell

Article Overview: Whether to use a "broker", consultant or in-house marketing team is always an issue with young franchisors.

FRANCHISE BROKERS vs FRANCHISING CONSULTANTS

There are no set rules, procedures or guidelines that answer whether a broker or consultant will best meet your needs as a franchisor. What is important is who will get the job done?

View franchise consultants are what is consider marketing experts. A franchise consultant usually represents the system and how to develop the network but they rarely actually sale franchises. A franchise broker falls into several different groups. There are the "business brokers" that specialize in franchise sales and there are the independents that only represent franchisors and their offering. A business broker may be representing as many as 200 different franchisors and the question becomes whether or not you are receiving the proper representation?

Frankly, the fees are about the same with the business broker usually doing a minimal amount of work. Personally, I've considered the business brokers more of a lead generator than an actual broker. My own experiences after 30 plus years of selling franchises the business broker charges too much for their services. I personally suggest that a franchisor consider in-house marketing after one year or so of offering their franchises to the general public.

Related Articles
  Why Franchisees Should Consider Using a Franchise Broker
  Why You Should Work With a Franchise Consultant
  Why Use a Franchise Consultant?
  Finding a Franchise
  Roles of Franchise Brokers and Consultants

Article Tags: franchise consultant, ken hollowell, our business, profran consultants



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Information Disclosure Requirements and Regulation on Franchisors Information disclosure system is the core system of franchising. The laws provides that the franchisors shall establish and implement a perfect information disclosure system, and provide the relevant information and franchising contracts in written form, at least thirty days before execution of franchising contracts. It also sets out the specific provisions on the information which shall be provided by franchisors, including the basic conditions and commercial reputation records of the franchisors and their legal representatives, business sources owned by franchisors, abilities of franchisors to provide service to franchisees and management and supervision on business of franchisees, franchisee fees and the payments, and budgets for investment in franchising shops. 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