Franchise Brokers Can Actually Add Value - By: sunshineconsulting

I often get calls from people who want to buy a franchise. It is what I do day in and day out. At times I question this vocation, which seems like you are hitting yourself in the head with a hammer and it feels good as you stop.

Another challenge is there is a lot of negativity in the blogosphere about franchise consulting
. For every success, there is a corresponding failure and while I have not done a statistical analysis on the results. If you have spent the time doing franchise research, failed on Google. I would not be surprised if the success to failure rate seemed like 1 to 3. That is right one success per three failures.

This is just an opinion and it is also perception. However, I am always curious as to why people fail in franchising. Frankly, I think it is tough to determine, as there are many unforeseen factors aside from the typical ones like bad management, undercapitalization and a business model that simply does not work. You can also have divorce, substance abuse, family illness. Outside stresses can be a death knell for any business.

One area that I find interesting is how often people focus on the wrong thing when they look to buy a franchise. Franchise brokerage and consultants are often vilified as being nothing but two bit salespeople simply pushing for a commission. While, there are some unsavory characters in the franchise brokerage world (just like any other industry). Not all attorneys are honest; most that I know are simply hard working folks trying to run a business. Also, the good ones know, or at least have a feel for the models that actually work.

This is usually the point in the discussion where the elitists come in with their barbs. Let’s pontificate more why don’t we? I mean what does a franchise consulting
or broker knows about franchising and what models work. They can’t say that it is ILLEGAL!

Well, we could argue that point; but the reality is, it’s usually those with their nose to ground that has the best intel regarding what’s happening. Frankly I think it’s absurd to think that someone cannot state their opinion on a business model. That’s what they do and more importantly what their clients are paying for RIGHT? The problem is not in stating the opinion; but, HOW it is stated?

If you are in the market to buy a franchise and happen to be working with a franchise brokerage company, it can actually really help you make a more informed decision. If you are concerned about the quality of service you are getting here are some helpful things to look for:

1) Don’t feel sold.High pressure sales tactics indicate the broker is simply after a commission.

2) Avoid Guarantees.If you here phrases like “recession proof “(no such thing) or verbal/written guarantees of success I would run.

3) Hear phrases like “Hot or New concept” Not sure I need to explain this one… but remember the “doc com” era in the stock market? Nuff said.

Franchising can be a great way to purchase a business and build wealth.If you are thinking about buying a franchise, make sure you do your research.Don’t be afraid to work with a third party, just make sure you think they are honest and KNOWLEDGEABLE about the industry.If you are fortunate enough to find a good franchise broker, they can help you make a more informed decision, sometimes which can be to “NOT buy a franchise”!If you are unsure, take a look at the guidelines above.They can really help you with your research.

If you are fortunate enough to find a good franchise broker, they can help you make a more informed decision, sometimes which can be to “NOT buy a franchise”!

About the Author

Author bio: The author of this article has specialization in Franchise Concepts.‘Franchise Disclosure Document brings the master plans for the Franchise Opportunities’.Along with this he also provides franchise consulting,franchise development and brokerage services to both individuals and franchise systems.Read more:http://sunshineconsultingltd.com

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