The Surprising Essential Skill of Franchise Brokers
One of the most frequently asked questions we receive is: “What do I need to know about being a successful franchise broker?”
The answer might surprise you. The best franchise brokers don’t necessarily always have stellar presentation abilities or solid backgrounds in business. In fact, the most important skill a franchise broker can have to succeed in the business and build long-term and meaningful relationships with clients is a passion for guiding others, our very own CEO Sabrina Wall reveals.
After all, being a franchise broker is all about working with both parties – the franchisees and franchisors – to reach the best solution to meet both party’s needs.
Honesty is the Best Policy
There’s no denying that commission is part of the franchise business since brokers are paid their commission only when a franchisee buys a franchise. However, commission should be an afterthought, Wall points out, recounting an experience in which a franchisee she was working with asked her: “What stops you from just showing me whichever franchise has the highest commission?”
“When he said that, it was a really valid question and I thanked him for it,” Wall explains.
“A lot of brokers do look at the commission as the primary factor in showing certain franchises and they are running businesses so I can appreciate that, but at the same time, there is a component of not forcing something that doesn’t fit on people,” Wall adds.
Wall admits that she doesn’t even pay attention to the commission when she’s working with her franchisees to determine the best franchisor option for them because being a successful franchise broker is about ethically guiding people to make the most optimal decisions for them.
“In this industry, there have been a lot of people who have been dishonest,” Wall divulges.
In fact, Wall founded the Franchise Brokers Association after being a broker for many years to take matters into her own hands and ensure the industry – occasionally tainted by dishonest intentions – could thrive.
People Over Profit
The best franchise broker also treats their clients as fellow humans with aspirations, motivations and fears, and not just as sources of income. A successful franchise broker must thus be committed to advocating for other people’s success.
“So, if you’re looking at or thinking about becoming a broker, just remember that the money – it’s good. It’s part of the equation but the best brokers are the ones who are able to look beyond that. They are able to look at the person not as dollar signs but as an individual who’s really needing help. They [franchisees] are needing advice on moving into the next chapter of their life and they’re looking for a guide so that they can be a hero in their own life and the broker – their role is to be that guide,” Wall explains.
Your Reputation Speaks for Itself
By being honest and fair, a franchise broker also builds a strong and meaningful reputation with its clients. This certainly pays off: Brokers with strong reputations are more likely to have loyal consumers who act as brand ambassadors for the broker’s business.
“People are going to ask them how they got into that franchise. They’re going to be out there marketing and promoting their business. So, when people ask them, ‘How did you get into this business?’ we want them to say: ‘I used this really amazing broker who looked out for me and cared about me, cared about what was right for me. And through that, I found the franchise and you should talk to that person too,’” Wall explains.
Interested in learning more about becoming a franchise broker, franchisee or franchisor? Contact us today! We’d love to hear from you.