If you are interested in buying a franchise business, it may behoove you to do so through a franchise broker. You should also consider utilizing the advice of a professional franchise consultant.
So, What Exactly is a Franchise Broker?
A franchise broker is simply someone who acts as a liaison between franchisors and franchisees. He gets the two parties together and has the sale of a franchise as his ultimate goal.
Empirebb.com compares a franchise, or business broker to a real estate broker because, essentially, a business broker does the same thing. The only difference is that instead of selling houses, the franchise broker is selling businesses. He assists the seller in preparing the business for sale and also prepares and delivers necessary documents. He will facilitate the closing of a deal and earn a commission on each sale.
The franchise broker’s knowledge of available business opportunities can greatly aid you in your own search.
Some Functions of Franchise Brokers
Empirebb.com provides this list of the various roles of a business broker:
* Listing businesses available for sale
* Assisting owners in the appraisal of their businesses
* Gathering and/or requesting all the relevant documents for the sale of the business
* Producing description sheets, which promote the businesses
* Promoting those franchises which he has listed
* Guiding/qualifying prospective franchisees
* Acting as an intermediary between franchisor and franchisee
* Setting up contacts for both parties with professionals such as lawyers and accountants who will be instrumental in completing the sale
* Assisting both franchisor and franchisee throughout the sales process
Well, What About a Franchise Consultant?
A franchise consultant provides professional advice to entrepreneurs interested in franchising. USfranchisenews.com suggests a list of things you, as a potential franchisee, should expect from a professional franchise consultant.
This list includes matching you with a franchise that will best suit your individual needs based on finances and personality. The consultant should find, within your selected industry, a franchise with a “creditable track record.” You should be advised by the consultant of what a particular franchise agreement will expect of you, so you can make comparisons through your own research. A consultant should assist the prospective franchisee in acquiring all pertinent information about a franchise and explain how you can research the franchise on your own. Finally, the consultant should aid in the review of legal documents and help you understand various financing options.
And What are the Advantages of this?
You might ask what the advantage could be in paying for this type of advice. After all, you are capable of doing research on your own. Well, there are many benefits associated with the acquisition of professional knowledge.
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