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Become a Business Broker
Through Transworld Business Advisors’ Franchise Development Program, the process of becoming a franchise broker is made simpler.
Welcome to the world of business brokerage. Step one: understand the lingo. You’ll probably hear a lot about business brokers and business consultants, as well as franchise brokers and franchise consultants. Here’s the catch: most of them do essentially the same job, though you’ll find minute albeit important differences in what those titles can mean throughout the industry.
Continue reading to learn the difference between a franchise broker and a franchise consultant, as well as what you need to do to get started in the industry. And be sure to download your FREE copy of our Franchise Brochure in the side column for more exclusive information about franchise brokerage and franchising with Transworld Business Advisors.
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Business Broker vs. Franchise Consultant
As we mentioned above, there isn’t always a distinct difference between a franchise broker and a franchise consultant, and you’ll often find the terms used interchangeably. Occasionally, though, they’ll mean different things, and if you want to become a franchise broker, you should understand the differences.
What’s important here is understanding what the broker or consultant does. Some brokers and consultants work independently, while others work for organizations with a client base that the company has established a relationship with, therefore potentially steering their buyers toward one of those franchises as opposed to the entire world of franchise-buying opportunity before them.
Other times, a “broker” refers to someone who deals with “main street” business valued at or below $1 million, while a “consultant” takes the heavy hitters valued above that price. But again, this is not an across-the-board assessment of what these job titles represent.
And further, some people will confuse the terms “franchise” and “business” and use them interchangeably as well – but there is a distinct business. A franchise, of course, is an established chain that sells the rights to use its brand and open an independent location to potential franchisees, whereas a business is just that – a standalone business, occasionally with more than one location, but nonetheless a non-chain.
Become a Business Broker
When it comes to the brokerage industry, there’s always going to be an immediate appeal. By helping someone buy or sell their business, you get paid. It sounds easy – though like any job that pays, there’s much more hard work that goes into the business than meets the eye. That’s important to understand if you want to become a franchise broker.
That’s something we like to stress at Transworld Business Advisors – the successful brokers and consultants are those that put in the time and effort. There’s a misconception about the industry because it’s considered a “work from home” opportunity. And while it certainly is, it’s not really a “strike a million dollar deal in your pajamas” type of opportunity. This is a suit-and-tie, executive suite-type of business, and it’s that level of professionalism we expect from our potential franchisees.
As we explained in one of our blog posts, there isn’t actually any official licensure needed to become a business broker. Instead, hopeful franchise brokers should look into state regulations regarding region-specific licenses. For example, oftentimes a real estate license is needed, especially given that most businesses own, rent, or lease a piece of real estate to operate their business from and that piece of real estate will likely be part of the sale.
Additionally, getting accredited by organizations like the International Business Brokers Association (IBBA), which offers the Certified Business Intermediary (CBI) designation, and the American Business Brokers Association, which bestows the Accredited Business Intermediary (ABI) designation, can raise your legitimacy and is never a bad idea.
Congratulations! You’ve just learned a lot about how to become a franchise broker. For more information on the demand for franchise brokers and an industry outlook, be sure to download your FREE copy of our Franchise Brochure in the side column, and contact us today to set up a meeting with a Transworld Business Advisors representative!
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