{"id":49312,"date":"2025-05-01T09:35:07","date_gmt":"2025-05-01T13:35:07","guid":{"rendered":"https:\/\/www.thefranchiseking.com\/?p=49312"},"modified":"2025-05-07T11:21:03","modified_gmt":"2025-05-07T15:21:03","slug":"working-with-a-franchise-broker-questions","status":"publish","type":"post","link":"https:\/\/www.thefranchiseking.com\/working-with-a-franchise-broker-questions","title":{"rendered":"Are You Working With a Franchise Broker?"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"620\" height=\"310\" src=\"https:\/\/www.thefranchiseking.com\/wp-content\/uploads\/franchise-broker-cautions-620x310.jpg\" alt=\"question about working with a franchise broker\" class=\"wp-image-49316\" srcset=\"https:\/\/www.thefranchiseking.com\/wp-content\/uploads\/franchise-broker-cautions-620x310.jpg 620w, https:\/\/www.thefranchiseking.com\/wp-content\/uploads\/franchise-broker-cautions-320x160.jpg 320w, https:\/\/www.thefranchiseking.com\/wp-content\/uploads\/franchise-broker-cautions-768x384.jpg 768w, https:\/\/www.thefranchiseking.com\/wp-content\/uploads\/franchise-broker-cautions-370x185.jpg 370w, https:\/\/www.thefranchiseking.com\/wp-content\/uploads\/franchise-broker-cautions-270x135.jpg 270w, https:\/\/www.thefranchiseking.com\/wp-content\/uploads\/franchise-broker-cautions-570x285.jpg 570w, https:\/\/www.thefranchiseking.com\/wp-content\/uploads\/franchise-broker-cautions-740x370.jpg 740w, https:\/\/www.thefranchiseking.com\/wp-content\/uploads\/franchise-broker-cautions.jpg 1000w\" sizes=\"auto, (max-width: 620px) 100vw, 620px\" \/><\/figure>\n\n\n\n<p>If you&#8217;re <strong>working with a franchise broker<\/strong> to help you find a suitable franchise to own, you&#8217;re going to want to read this <strong>in it&#8217;s entirety<\/strong>. Why?<\/p>\n\n\n\n<p>So you can make sure you&#8217;re looking out for #1. <\/p>\n\n\n\n<p><strong>Key Takeaways:<\/strong><\/p>\n\n\n\n<p>This post provides candid insider perspective about franchise brokers from someone who previously worked as one. Key points include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Franchise brokers receive substantial commissions ($20,000-$30,000+) from franchisors when they place a candidate<\/li>\n\n\n\n<li>Despite appearing to work for you, brokers are actually contracted by and represent franchisors<\/li>\n\n\n\n<li>This commission structure creates potential conflicts of interest<\/li>\n\n\n\n<li>Some brokers may prioritize high-commission opportunities over finding the best match for you<\/li>\n\n\n\n<li>Not all brokers operate with the same ethics or priorities<\/li>\n\n\n\n<li>The author recommends thoroughly researching any broker before working with them<\/li>\n<\/ul>\n\n\n\n<p>Finally, this franchise blog post emphasizes understanding this relationship dynamic to protect your interests when using a broker&#8217;s services to find a franchise opportunity.<\/p>\n\n\n\n<h2>I Used to Be a Franchise Broker<\/h2>\n\n\n\n<p>From 2001 to about 2009, I was a franchise broker. <\/p>\n\n\n\n<p>The short version: I became a franchise broker after being let go from my management position at an automotive franchise business. <\/p>\n\n\n\n<p>Basically, my dad convinced me that I&#8217;d be good at it, so I joined his franchise brokerage firm. As opposed to getting another &#8220;<em>job<\/em>.&#8221;<\/p>\n\n\n\n<p>Between my father, the CEO of the national brokerage firm we were a part of, and some of the other brokers, I learned the craft, well. And I had a couple of good years as a broker, income-wise.<\/p>\n\n\n\n<h2>How Much Income?<\/h2>\n\n\n\n<p>Back then, franchise companies were paying <a href=\"https:\/\/www.thefranchiseking.com\/work-with-a-franchise-broker-tip\">franchise brokers<\/a> around $12,000 for the placement of a candidate*.<\/p>\n\n\n\n<p>*When you work with a franchise broker, <a href=\"https:\/\/www.thefranchiseking.com\/what-everybody-ought-to-know-about-franchise-consultants\">franchise consultant<\/a>, or franchise coach (<em>which are all the same thing<\/em>), you are considered the &#8220;<em>candidate<\/em>.&#8221; Now this is important.<\/p>\n\n\n\n<p>When you work with a franchise broker, <strong>you are not their client<\/strong>. The franchise company (<em>franchisor<\/em>) is. Why?<\/p>\n\n\n\n<p>Because franchise brokers have <em>sales<\/em> contracts with the franchisors. <\/p>\n\n\n\n<p>That means they work for <em>them<\/em>, although it feels like they work for you. And they don&#8217;t charge you a penny! Now here comes the part you need to know.<\/p>\n\n\n\n<p>Franchisors are now paying franchise brokers <strong>$20,000 to $30,000<\/strong> to place a candidate (<em>you<\/em>) into their system. That&#8217;s a lot of money! <\/p>\n\n\n\n<h2>I Have Friends That Are Franchise Brokers<\/h2>\n\n\n\n<p>I have several friends who are franchise brokers. <\/p>\n\n\n\n<p>These are people I&#8217;ve know for years. People who I like and trust. However&#8230;they are human.<\/p>\n\n\n\n<p>And I don&#8217;t know about you, but if a company dangles <strong>$30,000<\/strong> in front of me, I get pretty excited.<\/p>\n\n\n\n<p><strong>Note<\/strong>: even though <strong>I haven&#8217;t been a franchise broker for years<\/strong>, I <em>still<\/em> get emails from franchisors offering $30,000 commissions for sending them someone who becomes a franchisee. Obviously, I turn them down. Why Joel?<\/p>\n\n\n\n<p>Because I&#8217;m <em>not<\/em> a franchise broker. I&#8217;m <a href=\"https:\/\/www.thefranchiseking.com\/franchise-ownership-advisor\">a franchise advisor<\/a>.  Anyway, here&#8217;s my point. <\/p>\n\n\n\n<p>If you&#8217;re working with a franchise broker, you&#8217;re worth $30,000 to him or her. <\/p>\n\n\n\n<p>So, logic dictates that a broker will aggressively try to match you to a franchise opportunity that will pay them a big commission like that. Right?<\/p>\n\n\n\n<p>And the thing is they&#8217;re only human. And money is money. <\/p>\n\n\n\n<h2>Some Franchising Brokers Don&#8217;t Care<\/h2>\n\n\n\n<p><em>Some<\/em> franchise brokers are greedy pigs. There&#8230;I said it.<\/p>\n\n\n\n<p>They don&#8217;t care if the franchise they&#8217;re representing isn&#8217;t doing well, or isn&#8217;t even a good match to what you say you want in a business. <\/p>\n\n\n\n<p>Instead, they only care about getting a $30,000 franchise commission check overnighted to them. It sucks, <a href=\"https:\/\/www.unhappyfranchisee.com\/promoting-phoenix-franchise-brands\/\">but as you can see here<\/a>, it happens.    <\/p>\n\n\n\n<p><strong>Bottom line?<\/strong><\/p>\n\n\n\n<p>All franchise brokers aren&#8217;t created equal. <\/p>\n\n\n\n<p>So, if you&#8217;re going to work with one, do your homework. <\/p>\n\n\n\n<p>That means using your favorite search engines and social media site (<em>s<\/em>) to see if there&#8217;s any dirt on the broker you&#8217;re considering working with. It&#8217;s not hard to do.   <\/p>\n\n\n\n<h2>What if You&#8217;re Working with a Franchise Broker Who Found You a Franchise You Like a Lot!<\/h2>\n\n\n\n<p>If that&#8217;s the case, there&#8217;s something you can do to make sure you&#8217;re looking at a legit franchise opportunity that has real potential to make you some money and reach your dreams and goals. <\/p>\n\n\n\n<p>And, to see if the franchising broker is looking out for <em>her<\/em> best interests or <em>yours<\/em>.<\/p>\n\n\n\n<p>That something is a Personal, Risk-Lowering Franchise Evaluation.<\/p>\n\n\n\n<h3>Get an Unbiased, Personal 1-on-1 Franchise Evaluation<\/h3>\n\n\n\n<p><a href=\"https:\/\/www.thefranchiseking.com\/franchise-evaluations\">My Franchise Evaluations<\/a> include:<\/p>\n\n\n\n<p class=\"has-background\" style=\"background-color:#eaeaea\">A&nbsp;written overview of the franchise opportunity you&#8217;re considering, a private 40-minute call with me including unfiltered pros and cons, operational challenge identification, success probability assessment, plus my unbiased, &#8220;<em>can you make money as a franchisee<\/em>&#8221; opinion. <\/p>\n\n\n\n<p>In addition, there will be ample time during our private call for you to ask me your most burning questions about what you&#8217;re potentially about to do. <\/p>\n\n\n\n<p>Finally, my <strong>Franchise Evaluation Service<\/strong> serves as a&nbsp;crucial step in making an informed &#8220;<em>yes<\/em>&#8221; or &#8220;<em>no<\/em>&#8221; decision on your potential franchise purchase.<\/p>\n\n\n\n<p><a href=\"https:\/\/www.thefranchiseking.com\/franchise-evaluations\">Learn more about my Franchise Evaluations<\/a><\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>If you&rsquo;re working with a franchise broker to help you find a suitable franchise to own, you&rsquo;re going to want to read this in it&rsquo;s entirety. Why? So you can make sure you&rsquo;re looking out for #1. Key Takeaways: This post provides candid insider perspective about franchise brokers from someone who previously worked as one. [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":49316,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","footnotes":""},"categories":[33],"tags":[2371],"class_list":["post-49312","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-franchise-research","tag-franchise-evaluations"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.0 (Yoast SEO v28.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Working with a Franchise Broker Truths &#8212; The Franchise King\u00ae<\/title>\n<meta name=\"description\" content=\"Is working with a franchise broker wise? 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