When it comes to buying and selling a business franchise, franchise brokers play a vital role in helping ensure a fair and favorable outcome. They act as a third-party mediator who’s responsible for initiating the relationship between the parties, providing market insight and expertise, and creating a structure through which everyone can negotiate fairly. Ultimately, despite their mediatory role, a franchise broker usually represents the interests of either the buyer or the seller.
Saving Time and Money
If you want to become a franchise broker, but are concerned about your lack of expertise, don’t worry. Transworld provides comprehensive training to every franchisee to help them develop the expertise needed to broker. Our experts will guide you through all the ins and outs of the industry and support you throughout your business.
Determining a Business’s Value
As part of our comprehensive training and support, we help franchisees gain a thorough understanding of how to determine the worth of the business. It’s the franchise broker’s job to determine an equitable cost for the seller to maximize their chances of finding qualified buyers.
Building a Rewarding Relationship
Building a good relationship between the buyer and the seller during the initial stage of a negotiation is crucial for achieving the best possible outcome. Franchise brokers use their expertise in market data and statistics to find leads with the most potential. And once a seller has found their qualified buyer, it’s the franchise broker’s job to help establish a connection between both parties that’s both trusting and productive.
Negotiating a Good Deal
The franchise broker establishes the way in which the negotiations are set out or arranged. They determine the format based on what enables the most productive dialogue between the parties, with the goal of reaching the optimum outcome for the party they represent. Their client will depend on them to be their effective negotiator. And once a deal is agreed upon, it’s the franchise broker’s job to initiate and advance the transaction’s closing.
Keeping It Confidential
When franchise brokers facilitate deals between more than one party, discretion is key. From confidential business earnings to a business’s for-sale status, a lot of the information shared when buying or selling a business franchise can put reputations and revenue projections at risk. During our initial training, franchisees learn about the principles of confidentiality in brokering and proven ways to follow and maintain best standard practices.
Are you interested in playing a meaningful role in helping fellow entrepreneurs succeed? If you’d like to know more about why franchise brokers are key to the purchase and/or sale of a business franchise, contact us today!