{"id":13102,"date":"2014-06-30T00:01:39","date_gmt":"2014-06-30T00:01:39","guid":{"rendered":"https:\/\/www.thefranchiseking.com\/?p=13102"},"modified":"2024-01-08T10:20:26","modified_gmt":"2024-01-08T15:20:26","slug":"3-things-franchise-brokers-would-prefer-to-keep-under-wraps-part-3","status":"publish","type":"post","link":"https:\/\/www.thefranchiseking.com\/3-things-franchise-brokers-would-prefer-to-keep-under-wraps-part-3","title":{"rendered":"3 Things Franchise Brokers Would Prefer To Keep Under Wraps: #3"},"content":{"rendered":"

\"hush<\/a><\/p>\n

In Part 2<\/a><\/strong> of this 3-Part series on the 3 things franchise brokers would prefer to keep under wraps<\/strong>, you learned the importance of words. Do you remember?<\/p>\n

If not, allow me to refresh your memory.<\/p>\n

You<\/em>\u00a0 Are Not The Client<\/h2>\n

When you work with a franchise broker (sometimes referred to as a franchise consultant<\/i>) you<\/i> are not their client-it only feels<\/i> like you are.<\/p>\n

That\u2019s because they\u2019re working with you<\/i>\u2026they\u2019re trying to help you<\/i> find the right franchise.<\/p>\n

Right?<\/p>\n

Wrong.<\/p>\n

The franchisors that the franchise brokers are contracted with are their clients<\/b>.<\/p>\n

That\u2019s because they\u2019re the ones paying.<\/p>\n

The franchisors are paying a lot to brokers-which is why franchise brokers can and almost always do, offer \u201cFree Franchise Consulting<\/a>.\u201d<\/p>\n

It\u2019s something you need to remember as they\u2019re presenting franchise opportunities<\/a> to you…ones that pay them for a successful placement into their franchise system.<\/p>\n

\"commission<\/a><\/p>\n

3 Things Franchise Brokers Would Prefer To Keep Under Wraps: #3<\/h2>\n

Now that you understand who\u2019s who, and what\u2019s what, it\u2019s time for you to learn something else about franchise brokers-and how they work<\/a>. And, what they would prefer<\/i> to keep to themselves.<\/p>\n

When I was a franchise broker, several of my candidates-notice I didn\u2019t say \u201cclients<\/i>,\u201d because they weren\u2019t, would ask this question:<\/p>\n

\u201cCan I just see your list<\/i>?\u201d<\/p>\n

My answer would always be \u201cno<\/i>.\u201d<\/p>\n

A Franchise Brokers Secret List<\/h2>\n

Every franchise broker in the world has a list\u2026a secret list. I had one. Barney<\/strong> has one. Everyone on Paul\u2019s team<\/strong> has one, too. And, all of them would prefer if you didn\u2019t see them.<\/p>\n

That\u2019s because these \u201clists<\/i>\u201d contain the names<\/b> of every franchisor they have signed contracts* with.<\/p>\n

*Franchise broker contracts stipulate the specific payment amounts brokers receive from franchisors upon successful placement of one of their candidates into a franchise system.<\/p>\n

In other words, if my friend Marshall<\/strong> presents a franchise opportunity to Jane and Jim Doe, and the Doe\u2019s sign a franchise contract and pay the upfront franchise fee<\/b>, Marshall gets the agreed upon payment*\u2026usually within 10 days of signing.<\/p>\n

The payment (the commission<\/i>) is usually a percentage of the upfront franchise fee.<\/p>\n

Are you with me so far?<\/p>\n

Good. Let\u2019s continue\u2026this is about to get good.<\/p>\n

When candidates asked to \u201csee my list<\/i>,\u201d my response was\u2026well\u2026a canned one. It was taught to me during training. It went something like this:
\n\u201cMy list really wouldn\u2019t do you much good, Jane. It\u2019s just a bunch of names. Some of them you would recognize, some you wouldn\u2019t. But, it doesn\u2019t matter. Your chances of picking one that\u2019s a winner, just by seeing a list, are slim to none. It would be a shotgun approach. I would hope that\u2019s what you\u2019re trying to avoid by working with me. My job is to learn all I can about you and then match you up to only those franchises that would potentially fit you based on what I\u2019ve learned about you and what you say you want in a business<\/i>.\u201c<\/p>\n

Then, I would always add this:
\n\u201cIf all you want a \u2018list,\u2019 go to a franchise directory or franchise portal<\/a>. You\u2019ll find all sorts of lists. And, if that\u2019s what you really want to do, you don\u2019t need me. Seriously<\/i>.\u201d<\/p>\n

That response usually worked. But, the reason I gave-suggesting that it would be silly for them to look at my list in the hopes of finding something that fit, was only part of the reason I didn\u2019t want to crack out my list.<\/p>\n

The Most Important Reason To Hide The List<\/h2>\n

The main reason that a franchise broker wants to keep his or her list secret has to do with\u2026you guessed it\u2026<\/p>\n

Money<\/strong><\/span>.<\/p>\n

That\u2019s right: There\u2019s a chance that a franchise candidate could spot a franchise opportunity from the list that looked interesting to them, and contact that franchisor directly<\/em>.<\/p>\n

Once that happens, the franchise broker is out of the picture and can\u2019t get paid if the candidate buys that franchise.<\/strong><\/p>\n

That\u2019s why franchise brokers would prefer to keep their lists to themselves.<\/p>\n

Finally, if you’re thinking of working with a franchise broker, you need to vet them.<\/p>\n

That said, here are 10 Questions To Ask Franchise Brokers<\/strong>:<\/p>\n

1. How long have you been a franchise broker?<\/p>\n

2. What is your franchise business experience?<\/p>\n

3. How many articles on franchising have you been quoted in?<\/p>\n

4. How many serious articles on franchising have you written?<\/p>\n

5. Are you part of a franchise yourself? And if so, do you get paid a fee for referring folks to your franchise company’s headquarters?<\/p>\n

6. Can you give me a list of at least 10 people who are in franchise businesses of their own, directly as a result of working with you?<\/p>\n

7. Can you give me the names of at least two franchise attorneys who will vouch for you?<\/p>\n

8. Do you work nationally or locally?<\/p>\n

9. Do you teach small business\/franchise classes at local colleges, libraries and\/or high schools?<\/p>\n

10. Is this your only business, or is this an add-on to another business you own?<\/p>\n

Wait…I thought of another one. It’s a really important question to ask a franchise broker before<\/b> you agree to work with him or her.<\/p>\n

11. Do you have the courage to tell a prospective franchise owner that they need to go find a job instead of investing in a franchise, because a franchise is not right for them?<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

In Part 2 of this 3-Part series on the 3 things franchise brokers would prefer to keep under wraps, you learned the importance of words. Do you remember? If not, allow me to refresh your memory. You  Are Not The Client When you work with a franchise broker (sometimes referred to as a franchise consultant) […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","footnotes":""},"categories":[252,254],"tags":[1466,1467],"class_list":["post-13102","post","type-post","status-publish","format-standard","hentry","category-franchise-brokers","category-franchise-consultants","tag-esource","tag-franchise-broker-commissions"],"yoast_head":"\nThings Franchise Brokers Would Prefer To Keep Under Wraps: #3<\/title>\n<meta name=\"description\" content=\"Part 3 of the 3 things franchise brokers would prefer to keep under wraps has to do with a secret list.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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Finally, he's been in franchising close to 25 years.","email":"joel@thefranchiseking.com","telephone":"2168312610","legalName":"Franchise Selection Specialists Inc.","foundingDate":"2002-01-20","taxID":"20-1184045","numberOfEmployees":{"@type":"QuantitativeValue","minValue":"1","maxValue":"10"}},{"@type":"Person","@id":"https:\/\/www.thefranchiseking.com\/#\/schema\/person\/b560fd324f6df9be52ac875e631beb66","name":"Joel Libava","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/0c74981307dba3f4970cdf8359a1b2fc6ffe7721a2e3d1001acd9ac59db6ed61?s=96&d=mm&r=pg","url":"https:\/\/secure.gravatar.com\/avatar\/0c74981307dba3f4970cdf8359a1b2fc6ffe7721a2e3d1001acd9ac59db6ed61?s=96&d=mm&r=pg","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/0c74981307dba3f4970cdf8359a1b2fc6ffe7721a2e3d1001acd9ac59db6ed61?s=96&d=mm&r=pg","caption":"Joel Libava"},"description":"I\u2019m The Franchise King\u00ae, Joel Libava. I'm the author of two helpful books on researching and buying a franchise. In addition, I'm a Franchise Ownership Advisor with 20+ years of experience working 1-on-1 with people interested in buying a franchise, safely. Subscribe to my free VIP Franchise Newsletter.","sameAs":["https:\/\/www.thefranchiseking.com","https:\/\/www.instagram.com\/thefranchchiseking1","https:\/\/linkedin.com\/in\/joellibava","https:\/\/in.pinterest.com\/franchiseking\/","https:\/\/www.youtube.com\/JoelLibava"],"knowsAbout":["Franchising"]}]}},"_links":{"self":[{"href":"https:\/\/www.thefranchiseking.com\/wp-json\/wp\/v2\/posts\/13102","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.thefranchiseking.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.thefranchiseking.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.thefranchiseking.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.thefranchiseking.com\/wp-json\/wp\/v2\/comments?post=13102"}],"version-history":[{"count":1,"href":"https:\/\/www.thefranchiseking.com\/wp-json\/wp\/v2\/posts\/13102\/revisions"}],"predecessor-version":[{"id":45794,"href":"https:\/\/www.thefranchiseking.com\/wp-json\/wp\/v2\/posts\/13102\/revisions\/45794"}],"wp:attachment":[{"href":"https:\/\/www.thefranchiseking.com\/wp-json\/wp\/v2\/media?parent=13102"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.thefranchiseking.com\/wp-json\/wp\/v2\/categories?post=13102"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.thefranchiseking.com\/wp-json\/wp\/v2\/tags?post=13102"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}