Working with a franchise broker is perhaps the most tried-and-true approach to buying a franchise — and with good reason, as you’ll see. From risk mitigation to right-sizing your investment, keeping the deal on track and more, franchise brokers play a key role as intermediaries in the end to end process. Let’s examine that role in closer detail.
First things first: What are franchise brokers, exactly? They’re key middle men who work on behalf of groups or individuals, connecting potential buyers with franchise investment opportunities. dedicated professionals who know the lay of the land, are aware of all available opportunities and can likely steer you in the direction of franchises that are a good fit for your skills, interests, financial profile and larger professional goals as well.
That alone could increase your return on investment later on. It’ll also help prevent you from developing tunnel vision and focusing too heavily on only one opportunity.
Avoid Costly Mistakes
Like any significant financial transaction, purchasing a franchise comes with a high degree of scrutiny from government authorities. It’s also subject to specific regulatory guidelines from the FTC and the IRS — in a nutshell, there’s a lot of complexity. And your franchise brokers can help navigate all of the red tape on your behalf, ensuring that you don’t lose out on a big opportunity.
What’s more, new information can always arise late in the course of a deal. And when it does, you don’t want it to result in the deal falling apart. Franchise brokers can prop up the cohesiveness of the process from end to end, keeping both sides in the game — or in the room — until you’re finally across the finish line for good.
Going into business as a franchise owner, even if you’re working from a gold-standard concept, comes with inherent risks. And this is the third, and perhaps most crucial, area where franchise brokers can deliver value.
For example, you may not be aware that every franchise is required to file detailed reports about failures. Part of the franchise broker’s role is to compile these reports and share them with prospective new owners. In this way, they can help you avert riskier investments, make more informed decisions and align with the franchisor about “right-sizing” your investment.
It’s the kind of insight and intervention that can be a game-changer (and a deal-saver) when it comes to not only securing your short-term investment goals, but also powering your long-term success.
As we have seen, crossing the finish line — that is, signing on the dotted line to secure your dream franchise — can be a difficult process without an experienced franchise broker on hand to assist. These professionals add value in countless ways, including:
- Surfacing a wide range of opportunities available — and steering you toward those that are the best fit
- Helping to prevent costly mistakes related to the transaction
- Mitigating risks by calling your attention to weaknesses in business models and historical failures
So if you’re actively pursuing a franchise investment without a franchise brokers, don’t fret — it’s still not too late. They can play an important role in the franchise buying process.
Get in touch with us at Spherion Staffing for help finding a franchise broker in your area.