The business broker is a specialist who (theoretically) is best suited to match businesses to his/hers clients.
Essentially, the business broker helps to sell businesses as the intermediary between the buyer and the seller.
The idea of the business broker franchise is to have a better exposure to the public and more synchronised service.
Yes, you can act as the independent business broker but your chances to succeed are small. There reason is quite simple.
Representing business opportunities requires a corporate image. Small office in the shopping center or an obscured alley will not provide the sufficient business exposure. On the other hand, the business broker franchise will offer enough advertising to attract potential clients.
The business broker franchise is a bit of the paradox.
On one side you help clients to sell and buy franchises, on the other you have already purchased a franchise which is different from the products you propose.
However, the business broker franchise is quite specialised and only certain candidates are suitable to run it.
The ideal business broker franchisee should be a banker, lawyer, tax expert, consultant and entrepreneur in one person.
Unfortunately, there is not enough life to become expert in all fields.
Therefore, franchisor provides courses and training sessions to cover the gaps.
Essentially, you must have the flair for all of the above attributes.
The rest can come through the training and front-line experience.
The business broker franchise is not a complex system to run. However, it is a salesman type operation and you must expect to travel a lot. Therefore, the cost of the franchise, rent, royalties and the salary of at least one administrative employee are the basic expenses. You can expect to pay around $50K for a good business broker franchise. However, you must be careful. There are competitors in the form of banks and other corporate systems which do have business-to-business specialists.
A lot of small business owners will turn to the bank for advice before searching for other professional companies. Thus, the proper research is paramount. Put yourself in the shoes of the business owner who tries to sell/buy a new franchise. Search the newspapers, internet and ask other owners to see how well is the proposed business broker franchise exposed to the public. If you are still happy then go ahead! We would recommend to consider franchisors such as: BCI Business Brokers, National Business Brokers and McCormack Brokers.
Most business broker franchises sell for $50K-$100K. However, you will need a total investment of about $150K to operate. Fees, charges, rent, administrative costs and the royalties will influence you budget. Thus, it is important to analyse the performance of the franchisor prior investing into the business.