Franchise Brokers Can Actually Add Value

I often get calls from people who want to buy a franchise. It is what I do day in and day out. At times I question this vocation, which seems like you are hitting yourself in the head with a hammer and it feels good as you stop. Another challenge is there is a lot of negativity in the blogosphere about franchise consulting . For every success, there is a corresponding failure and while I have not done a statistical analysis on the results. If you have spent the time doing franchise research, failed on Google. I would not be surprised if the success to failure rate seemed like 1 to 3. That is right one success per three failures. This is just an opinion and it is also perception. However, I am always curious as to why people fail in franchising. Frankly, I think it is tough to determine, as there are many unforeseen factors aside from the typical ones like bad management, undercapitalization and a business model that simply does not work. You can also have divorce, substance abuse, family illness. Outside stresses can be a death knell for any business. One area that I find interesting is how often people focus on the wrong thing when they look to buy a franchise. Franchise brokerage and consultants are often vilified as being nothing but two bit salespeople simply pushing for a commission. While, there are some unsavory characters in the franchise brokerage world (just like any other industry). Not all attorneys are honest; most that I know are simply hard working folks trying to run a business. Also, the good ones know, or at least have a feel for the models that actually work. This is usually the point in the discussion where the elitists come in with their barbs. Let’s pontificate more why don’t we? I mean what does a franchise consulting or broker knows about franchising and what models work. They can’t say that it is ILLEGAL! Well, we could argue that point; but the reality is, it’s usually those with their nose to ground that has the best intel regarding what’s happening. Frankly I think it’s absurd to think that someone cannot state their opinion on a business model. That’s what they do and more importantly what their clients are paying for RIGHT? The problem is not in stating the opinion; but, HOW it is stated? If you are in the market to buy a franchise and happen to be working with a franchise brokerage company, it can actually really help you make a more informed decision. If you are concerned about the quality of service you are getting here are some helpful things to look for: 1) Don’t feel sold.High pressure sales tactics indicate the broker is simply after a commission. 2) Avoid Guarantees.If you here phrases like “recession proof “(no such thing) or verbal/written guarantees of success I would run. 3) Hear phrases like “Hot or New concept” Not sure I need to explain this one… but remember the “doc com” era in the stock market? Nuff said. Franchising can be a great way to purchase a business and build wealth.If you are thinking about buying a franchise, make sure you do your research.Don’t be afraid to work with a third party, just make sure you think they are honest and KNOWLEDGEABLE about the industry.If you are fortunate enough to find a good franchise broker, they can help you make a more informed decision, sometimes which can be to “NOT buy a franchise”!If you are unsure, take a look at the guidelines above.They can really help you with your research. If you are fortunate enough to find a good franchise broker, they can help you make a more informed decision, sometimes which can be to “NOT buy a franchise”!