Skip to Content

How Franchise Brokers Can Distinguish Themselves

Published on September 08, 2017

Share Tweet Share

When a prospective franchisee contacts a broker, one of the first questions they ask is if their preferred territory is still available. Depending on the response, this question leads to a lengthy process of trying to match the prospective franchisee with the right franchise. We find the territory and franchise location receives more focus than the quality of the market. It’s important to remember though, that a franchise broker should also qualify a candidate, identify the best franchise from their portfolio and help complete the franchise transaction.

Franchise brokers can add more value to their services and distinguish themselves by providing information on the market of the franchise location. By using a site location firm, the franchisee can get some of this key information but they will not receive a competitive franchise profile of the market. That is where you come in.

Approximately 50% of franchises have an investment value of 200K, while 10% of franchises require an investment of a million dollars or more. At the higher franchise investment level, both the franchisor and prospective franchisee have the resources to analyze whether the proposed territory provides demand for the goods or services offered by the franchise. At lower franchisee investment levels, the amount of market scrutiny and analysis is either limited or non-existent. 50% of Franchise Investments vs. 10% of Franchise Investments

When working with a client, consider the additional value you can provide if you are able to tell them which franchise systems are in the proposed market and how successful there are. Using the Maps product in our Franchise Intelligence platform, you can get this information to your clients in under 10 seconds.

When looking for ways to enhance your franchise broker services, you need to find services that add to the client satisfaction and improves the sales process. Using mapping software is the best way to find the ideal location for your client’s new franchise. As a franchise broker, it is crucial to continually add more value for the client to your existing service package.

Learn More about Franchise Intelligence and Maps here.

About the Author: Ed Teixeira
Ed Teixeira is a recognized franchise expert with over 35 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 is the author of Franchising From the Inside Out and The Franchise Buyers Manual. He has participated in the CEO Magazine Roundtable Meetings with business leaders from around the country and spoke at a number of venues including the International Franchise Expo and the 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 631-246-5782 or

Thinking about buying a franchise?
Not sure how much can you afford?

Fill out our Franchise Affordability Calculator

Related Articles

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.

Read More

Growing Your Franchise System Takes More Than Leads

The emphasis on franchise system growth is as old as franchising, having been accepted as the indicator of a quality franchise.

Read More

Franchisors Need to Avoid Wasting Their Franchisee Leads

When franchisors strategize their system growth, the major focus is placed on the amount and quality of their franchisee leads.

Read More

The Two Traits You Need in A New Hire

After owning 4 successful businesses, in different business sectors, there are two common attributes my good hires have shared; Curiosity and Tenacity.

Read More

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.

Read More

The TOP 4 Traits Of A Successful Franchise System

These traits lead to low franchisee turnover, an attractive investment opportunity, outlet growth and brand recognition and consumer satisfaction.

Read More

The #1 Reason You Are Scared to Open Your Own Business

Owning a business is hard. Each venture has its differences – different customers, different go-to-market strategies, different business partners.

Read More