How Franchise Brokers Benefit from Franchise BenchmarkingPublished 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.
Franchising and Murphy’s Law
When it comes to franchising, Murphy’s Law comes into play more often than desired. In many cases, a new franchise takes off slower than anticipated.
Franchise Candidates Need to Dig Deeper
Before a prospective franchisee invests they must review the information disclosed in the Franchise Disclosure Documents.
There’s More to a Franchise Than the Fees
The most immediate consideration is usually how much is the franchise fee and other ongoing payments like royalty and advertising fees.
Monitoring your Consumer Sentiment Is Key to Selling your Franchise
In the franchise industry, franchisors can view comparisons and relationships between consumer satisfaction for the products or services a franchise offers.
Franchisings Biggest Problem – Consumer Driven Investing
A good consumer experience is not a reason to invest in a franchise. It skews the decision-making process of a prospective franchisee from start to finish.