The notion of franchising has slowly but surely made its way into the mainstream. However, there still seems to be a lot of gray area. Especially when it comes to a broker's salary, but how much do franchise brokers make?
Let’s take a look at your average franchise broker and the type of compensation they can expect.
If you’re looking to make your name in the franchising world as a broker, then there’s one big piece of information that you need to know.
A franchise broker's salary depends entirely on the franchise brokers themselves!
As a general rule of thumb, a franchise broker reaps what they sow. The more work they put in, the better the output. It’s also worth mentioning that the franchise broker business model equips them with the opportunity to earn a significant income.
However, it's never as simple as that. In order to determine how much the broker's salary will really be, you must account for the time, effort, and skill that's applied to their work. And in addition to putting in the hours, you must continue building your skills in an effort to fuel your experience. This includes following up with clients, up-to-date marketing strategies, and building your referral network.
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If you’re considering becoming a franchise broker, how will you get paid, exactly? To start, you should know that franchise brokers are only paid a referral fee when they’re successful in matching one of their candidates to a franchise.
Since franchise brokers are hired by franchise companies to find and qualify prospects for franchises, prospective franchisees are often introduced to a broker network.
In the instance that a franchise broker is successful in making a sale, they’re typically paid 40-50% of the franchise fee, and sometimes even more than that.
Since franchise fees in the United States vary from $5,000 to $50,000, franchise brokers can expect to earn a commission in the range of $2,000 to $25,000 per match. This ends up averaging to a whopping $12,000. In 2019, the average franchise fee was $44k!
If you choose to work as a franchise broker, you can easily earn a six-figure annual gross income. All you have to do is achieve 5-8 placements a year.
Outside of earning a good income, working as a franchise broker has many benefits.
One of those being helping others. Brokers guide their candidates to the ideal franchise which ultimately provides freedom and security for franchisees.
To get started as a franchise broker, get in touch with us today and we'll be your guide.