Written and Sourced From Franchiseba.com
Although the notion of franchising has slowly but surely made its way into the mainstream, there still seems to be a lot of gray area surrounding franchise brokers. For most people, there’s a lot of confusion regarding what a franchise broker does exactly, and how they earn their income.
Let’s gain some clarity on how much franchise brokers make.
You Reap What You Sow
If you’re looking to make your name in the franchising world as a franchise broker, then there’s one big piece of information that you need to know: The level of earning that a franchise broker makes depends entirely on the franchise brokers themselves!
As a general rule of thumb, a franchise broker reaps what they sow. So if you’re a franchise broker, the more you put into your work, the better your output will be. It’s also worth mentioning that the business model followed by most franchise brokers equips brokers with the opportunity to earn a significant income. When you’re trained to succeed, it’s hard to fail.
Having said that, however, in order to determine how much you’ll really make, you also need to account for the time, effort, and skill that you possess and apply to their work. In addition to putting in the time, you must build your skills and put in a significant amount of active effort, which includes following up with clients, marketing, and building your referral network.
How Franchise Brokers Get Paid
If you’re considering becoming a franchise broker, then it’s important to understand how you’ll get paid. To accurately estimate the amount of money that a franchise broker makes, you should know that franchise brokers are only paid a referral fee when they’re successful in matching one of their candidates to a franchise.
Since franchise brokers are hired by franchise companies to find and qualify prospects for franchises, prospective franchisees are often introduced to a broker network. In the instance that a franchise broker is successful in making a sale, they’re typically paid 40-50% of the franchise fee, and sometimes even more than that.
A General Estimate: How Much Do Franchise Brokers Make?
Since franchise fees in the United States vary from $5,000 to $50,000, franchise brokers can expect to earn a commission in the range of $2,000 to $25,000 per match, with an average amounting up to a whopping $12,000. In 2019, the average franchise fee was $44k. If you choose to work as a franchise broker, you can easily earn a six-figure annual gross income. All you have to do is achieve 5-8 placements a year.
Want to Become a Franchise Broker?
Outside of earning a good income, working as a franchise broker has many benefits, and one of those is helping others. Franchise brokers guide their candidates to the ideal franchise, which ultimately provides freedom and security for franchisees. If you want to get started as a franchise broker, then get in touch with us to learn more or join the Franchise Training Institute!