Advantages and Disadvantages of Using a Franchise Broker

A franchise broker is an individual that works with franchises and individuals to facilitate the sale of a franchise. This individual is similar to a real estate broker and acts as a go-between for these parties. If you are interested in purchasing a franchise, you may want to consider the help of one to aid the process. There are also a few potential drawbacks that you may experience when working with a franchise broker. Here are some of the advantages and disadvantages of using a broker.


In order to become a franchise broker, an individual has to be very experienced in franchises. Many of these brokers have been involved in the industry for many years and are very familiar with the process. If this is your first time trying to purchase a franchise, this experience can be very helpful. Many times, they can help you avoid making mistakes that they have seen other entrepreneurs make over the years.

Choosing a Franchise

Another potential benefit of using a franchise broker is that they can help you choose the right type of franchise for you. They are very good at looking at your profile and assisting you with your decision. Even if a franchise is theoretically profitable, it will not do you any good if it does not match your personality. The broker typically represents hundreds of different franchises and they can help you choose the one that will work best for your situation.

Save Your Money

Many people end up making poor choices when it comes to investing in a franchise. They might have their hearts set on a particular franchise that turns out to be a scam. Franchise brokers know how to separate the good companies from the bad companies and can help protect your money.


In some cases, you might feel pressured when working with a franchise broker. Franchise brokers get paid on commission and they only make money if you end up making a purchase. Because of this, they might sometimes pressure you into making a purchase even if it is not in your best interest. If this is the case, you should avoid working with a particular broker and try to find another way to purchase a franchise.

Limiting Your Choices

If you have spent any amount of time looking at franchises, you know that there are literally thousands of them out there for you to choose from. Even though this can be a drawback, it also allows you to find a business model that you are passionate about. Because of this, you may need to look through hundreds of franchises before you find one that is a good fit. If you work with a franchise broker, you will essentially be limiting your options because they most likely only represent a portion of the companies that are in the market.

blog comments powered by Disqus