Sabrina Wall, CEO August 25, 2020
On a broker collaboration call, we had several of the franchise brokers commenting that they love finding franchise buyers who were working with other franchise consultants (their title) or franchise brokers (legal title). That seems counterintuitive. Usually you wouldn’t want a buyer working with someone else. The reason they said this is because it is easy for the FBA broker to win that buyer’s business. Why is that? Well, we’ll tell you.
FBA franchise brokers are taught how to read franchise disclosure documents from the beginning, so they understand the impacts of the contents of that disclosure. They are educated on how to help the franchise buyer ask good questions about that disclosure. FBA Franchise Brokers use independent data companies to research franchises. They look at more than just the marketing materials. They also study the market.
When a Broker is looking at a franchise brand they consider:
- The right culture
- Risk tolerance level
- Communication and work style of the buyer
- The right competency matching
- Values matching
FBA Brokers also know how to use franchise professional advisors, like attorneys and accountants specializing in franchising, and how to integrate those parties into the process so the result of the research of the buyer — is a full picture.
The Franchise Brokers at FBA have EXTENSIVE training. They start with 5 weeks of training – far more than most franchises – and then they go into multiple weekly training sessions for the life of their business. In these training sessions, they are kept abreast of industry trends, franchise laws, funding, insurance, financial, ethics, communication, and inventory training. They are constantly being fed quality insights, which lead to – them being exceptional at the services they provide franchise buyers.
We believe it’s okay to be honest and clear, but this method takes A LOT more work and time as you can imagine. It requires a heart that cares for the buyers hard earned money and a strong character of integrity. We scrutinize every franchise broker who comes through our association and we don’t let just anyone in. They have to pass character and business acumen interviews performed by a group of senior franchise brokers and the FBA leadership to ensure they will fit with our group. This method has gotten us a solid group of good people who want to do the right thing, and care about the results for the franchise buyer.
Brokers Reviewing the FDD
The simple question for the franchise broker is, do you review the FDD? If they don’t, it’s okay to still work with them, but just know, they don’t have a full understanding of the franchise they are promoting – and you still need to do a lot more research. The alternative option is to work with an FBA certified franchise broker. Once you start, you will know 100% that you are working with a different kind of professional franchise broker, one who is focused on helping you be informed to make smart investment decisions. It will be clearly evident, almost immediately, during the process we take you through. You will know the difference.
To learn more about the FDD check out our blog: //www.franchiseba.com/blog/
That’s why our brokers love working with franchise buyers who were formally working with someone else.
To talk to an FBA franchise broker today, contact us and we will put you in touch with one.
Note: We use the term “Franchise Broker” because it is the legal term for our profession. Others in the industry use “Franchise Consultants” which they self-define. We choose to use the legal term as we feel it’s more appropriate and clear. Consultants typically charge for services. Franchise Brokers are paid by the Seller, not the Buyer. There is no charge to the Buyer for our Franchise Broker services.