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. 
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.
Not sure how much can you afford?
Fill out our Franchise Affordability Calculator
Voyage Franchising
Related Articles
Open Your Own Independent Business or Buy a Franchise?
From the outset, you’ll have some obvious questions you’ll need to ask yourself before you can start formulating your own strategy to begin your venture.
New York Times Investigates Subway’s Abuse of Franchisees
New York Times investigation into the use of questionable practices by one its Franchise Development Agents that culminated in the agent acquiring two of a franchisees Subway stores.
The Fall of A Giant – Are Subway’s Healthiest Days Behind Them?
Not even a decade ago, Subway was the champion of healthy eating. In fact, they were the largest fast food chain in the world.
What Sub-Franchising Really Means
Sub-franchising is frequently confused with other franchise models, including area developers, master franchisors, regional developers.
Maximize Market Penetration and Branding with Multi-Unit Franchisees
Multi-unit franchising grows in popularity, in the Quick Serve Restaurant sector, this model continues to expand into other franchise sectors in popularity.
The Top 10 Franchise Grade Facts & Figures From 2017
Detailed studies on emerging franchise success rates, errors in Item 20 disclosure and sector performance, Franchise Grade’s reports help you.
A Road Block to Franchise Growth is Right Under Your Nose
New franchise growth is the top priority for emerging franchise brands. Many of these franchises have an obstacle on the road to more franchise locations.