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How Franchise Brokers Benefit from Franchise Benchmarking

Published on August 10, 2017

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Most franchise brokers are part of a specific network that has a portfolio representing 200 or more franchises. This can be an advantage to franchise candidates since these broker networks require a franchisor to meet certain performance standards before being accepted. The objective is to provide prospective franchisees a choice among the most successful franchises to choose from. However, there can be a disadvantage to this approach since a prospective franchisee may have an interest in a franchise that’s not part of a broker’s portfolio. Some brokers can work out of network with a franchise candidate. Because broker networks don’t demand exclusivity from a prospective franchisee it’s not unusual for a candidate to work with several brokers.

A franchise broker is expected to be knowledgeable of numerous franchise opportunities. It’s not unusual for a candidate to expect the broker to compare features among franchise systems. This is where benchmarking can deliver significant value to a broker network and its brokers. By utilizing our Benchmark product, brokers can show franchise candidates how franchises compare in terms of overall performance and key variables. This comparison includes franchise growth, turnover, territory rights and initial term.

Franchise Intelligence – Benchmark

Our Benchmark product gives franchise brokers a significant advantage in Franchise Intelligence with:

  • Real-time industry knowledge
  • Franchise trends based on Franchise Disclosure Documents (FDDs)
  • In-depth competitive knowledge on the franchises they represent
  • Key franchise industry statistics at your finger tips

Having Franchise Intelligence will accelerate the sales process and deliver more conversions to franchise brokers. You use real-time data to show why the fastest growing and most successful franchises outperform other franchises. A broker doesn’t have to rely on anecdotal information but can refer to real facts.

About the Author: Ed Teixeira
Ed Teixeira is a recognized franchise expert with over 40 years’ experience in the franchise industry. He has served as a corporate executive for franchise firms in the retail, manufacturing, healthcare and technology industries and was a franchisee of a multi-million-dollar home healthcare franchise. Ed and Richard Chan are the authors of a new textbook, Franchising Strategies: The Entrepreneurs Guide to Success, to be published on July 1st by Routledge on July 1st. He has participated in the CEO Magazine Roundtable Meetings with business leaders from around the country and has spoken at a number of venues including the International Franchise Expo and Chinese Franchise Association in Shanghai, China. Over the course of his career, Ed has been involved with over 1,000 franchise locations and launched franchise concepts from existing business models. Ed can be contacted at [email protected].


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