In the wonderful franchising industry, it is sometimes surprising when a franchisor is hesitant to work with a franchise broker, franchise consultant or franchise coach. Franchise brokers are industry insiders that are trained to match a potential franchisee’s skill set with a franchisor’s business model. Most franchisors that work with brokers know it helps attract highly qualified franchisees.
Franchise brokers play a solid role in connecting a prospective franchisee with a franchisor that is potentially the “right fit.” Brokers work to pre-qualify potential franchisees as much as possible to have the proper skill sets to become successful in the franchise business they choose. It is a service that just makes sense for the potential franchisee and franchisor. To make the most of the services offered by franchise brokers, communication between the franchisor and the broker is key.
Communication is Key
It is important that franchise brokers have good knowledge of franchisor’s business models that they represent. This enables the franchise broker to “match” clients to franchisors effectively. Since the franchisor’s business model is a key factor in determining if a potential franchisee could be the right fit for the franchisor, constant communication between franchisors and franchise brokers is necessary. It is very beneficial for the franchisor to help the broker stay “up to date” on the franchisor’s advancements and prospective franchisee opportunities.
Avoid the Reverse Approach
It is common in the franchise industry for someone looking to purchase their own franchise to do so in a product or service sector they personally like. Example: I like to eat so I should purchase a restaurant franchise. Instead, potential franchisees should make their selection based on what type of business model they are best suited for according to their skill sets. Essentially, a potential franchisee should identify the skills that will be utilized to successfully implement the franchise business model they are considering to operate. Franchise brokers help potential franchisees figure out which type of model they should be pursuing. This, in return, helps potential franchisees make a choice that will best position them for success.
R7’s Relationship with Franchise Brokers
Rhino7 has had more than 20 years of experience working with franchise brokers and has seen the industry evolve immensely. We know the important role franchise brokers play in developing franchisor growth and franchisee success, and that is why we enjoy working with brokers. Rhino7 is continually interacting with the brokers, communicating the different business models of the many brands we represent. Because at the end of the day, the broker isn’t invested in which brand the potential franchisee chooses, their goal is for the potential franchisee to choose the franchise with a business model that best fits the needs and wants for their family.