How do you find and hire a reputable franchise consultant or broker to assist you with the sale process?

Understanding the roles of a franchise consultant and a franchise broker is crucial when selling a franchise. A franchise consultant acts as an independent advisor, providing comprehensive support through valuation, marketing strategies, due diligence, and the closing process. Their goal is to guide you through each step to ensure the sale aligns with your objectives and maximizes value. On the other hand, a franchise broker serves as a middleman, connecting you with potential buyers and earning a commission from the sale. While brokers focus on finding buyers and facilitating the sale, consultants offer strategic advice and hands-on support.

The system is different in the UK. We do not have franchise brokers. Usually franchise consultants will also handle franchisee recruitment, if not then it is usually carried out by the franchisor.

Today, these terms are entirely interchangeable and used along with "Franchise Referral Agent," "Franchise Advisor," "Franchising Expert," and so on. With nary an exception, any title utilized monetizes whatever it is they call themselves.

This article needs to be re-written, if it going to be helpful about selling an existing unit or two in a franchise system, in the United States. The following elements need to be addressed. 1. Some franchisors have resale programs. 2. All franchisors have first right of refusal. 3. In any event, the seller has to choose between transferring the existing franchise agreement or having the buyer into into a new agreement. 4. Franchised businesses with real estate have to be handled using a licensed real estate broker; there is no comparable license requirement for franchise brokers.

It’s not really that hard if your are a good business owner. Your financials should be in order and you should always work with your franchisor. They ultimately will have to approve your buyer

You should carry out thorough due diligence when hiring a franchise consultant or broker. Some of the checks would be checking reviews, speaking to past clients, checking out the financials of their current & past businesses, possibly even other reputation or criminal background checks. If you have a business viable for franchising then you have a valuable business, getting the right advice is therefore crucial. "If you think it's expensive to hire a professional to do the job, wait until you hire an amateur." Red Adair

Right now, there is no required document that you need to enter into with a consultant or broker. You may also work with more than one broker if two are better. Some will pursue opportunities for you that pay the highest commissions as opposed to what might be the best "match" for you. This should be accomplished regardless of the commission paid by the franchisor. If you feel it isn't the case, find another consultant/broker.

Franchise consultants (full disclosure: I am one) can serve as invaluable guides throughout your franchising journey. To ensure you find the right consultant, carefully review their experience, references, and LinkedIn profile. If this information is hard to come by, proceed with caution. The best consultants offer insights you might not have considered, thanks to their relationships with the brands they represent. They should respect your pace and preferences, never pushing you in a direction you're uncomfortable with. If you don't feel a genuine connection during your initial conversation, continue your search—there are many qualified consultants available.

Today, many "franchise brokers" often utilize the same methodology and criteria to "match" the potential Franchisee Investor to a given brand. Some, however, find it acceptable to match potential Franchisee Investors with franchisors who will pay them the highest fee. Should you come across a Broker or Consultant that gives you that impression, it is highly suggested you find another. Remember, the real "CLIENT" is the franchisor, not the Franchisee Investor.

Even if after your due diligence it all checks out the consultant or broker may not be right for you. Working with clients is a very close relationship, built on shared values & trust. If your consultant does not genuinely share your values & enthusiasm for your business it's unlikely to be successful.

It's all about track record, trust & proof of delivering results. Fee's are less important, a % here or there makes no difference if the franchise is not successful.

"Fees" are not typically provided to the Franchisee Investor regarding what they're being paid by the "real" client, the franchisor. This fee collected should the Franchisee Investor agree with a franchisor is derived from the initial franchisee fee paid to the franchisor. In turn, the franchisor provides a portion of the initial fee paid to the broker or consultant. These amounts can range from 30% to 50% of the initial franchise fee. Some will give the broker the ENTIRE initial franchise fee, including additional spiffs for completing transactions by a specific date.

As I eluded to above thorough due diligence should be carried out before you work with anyone. References, background checks, recent successes etc.

Conversely, the franchise broker/consultant should be with you throughout the process. He or she should be accessible at any time during the process, and updates should be consistent and ongoing. There is NO CONTRACT you should enter into with a domestic U.S. franchise broker.

A good consultant will be proactive in supplying regulars reports on progress. That said a clear plan, goals including KPI's should be in place & form part of any agreement before you start working with anyone.

As a franchise consultant, there are no obligations or costs for my services. You should do your homework, review their LinkedIn Profile, read their posts and visit their website. In my case, I was that transitioning Executice that became a small business owner through franchising. Today, I aam a franchisee so it is easy to share my first hand experience and guide them through the process.

Aside from the obvious due diligence people are successful doing what they enjoy. Therefore say you have two consultants that both check out great & one has a passion for your brand, product or services it is likely they will be more successful. Personal relationships are also key, you will be working very closely for a long time with a consultant or broker.

It is not about the passion of the franchise broker that should come into play. This is the FRANCHISEE INVESTOR's decision, and while the broker might have preferences, these are not to be directional for you. But, of course, a good broker will know the brand(s) and discuss them with you thoroughly.

Cada vez mais as softskills fazem diferen?a quando somadas a conhecimento e capacidade técnica. Habilidades interpessoais, como comunica??o eficaz, empatia e capacidade de negocia??o, s?o fundamentais para um processo de venda de franquia bem-sucedido.