If you will check the best performing franchises in Australia then mortgage broker franchises will top the list.
Every now and then at least 2 financial franchises are in the first ten best performing businesses.
The mortgage broker franchise is popular in Australia because the property market is very strong there.
However, there are independent operators which provide mortgage broker services too.
Thus, again there is a question - should I go independent or should I purchase a franchise?
In other articles we argued that not all franchises are the best option.
Certainly, tutoring franchises do not offer the necessary benefits for the investment. Nonetheless, the mortgage broker franchise requires a strong corporate image. It is very unlikely that clients will trust the "Joe Bloke" business to get the financial advice. What's more the "Joe Bloke" will unlikely have the necessary advertising exposure. Thus, it is wise to enter into a franchise rather than the independent operation.
As we mentioned earlier, it is better to enter into a mortgage broker franchise rather than start your own business.
Most mortgage broker franchises are not that expensive.
You can run the operations from home and you can meet clients at their premises.
This reduces the cost of leasing and administration.
Mortgage brokers can communicate using mobile phones and emails.
This means that secretarial expenses are also minimal.
You should choose the mortgage broker franchise based on the industry performance. There are various organisations which rate the performance of franchises. Although, the rating is not fully objective it does provide some picture where the company stands.
Currently, Smartline mortgage broker franchise tops the list. There is a general satisfaction of franchisees in terms of advertising, training and the service. Happy franchisees also mean that customers are happy too.
The second (probably equally good) mortgage broker franchise is Mortgage Choice. Again, very good level of satisfaction from franchisees and customers alike. In fact Smartline and the Mortgage Choice appeared among top ten best franchises in Australia (for 2010 listing). We would not recommend smaller operators as there is not enough data to confirm their performance.
You need $20K-$30K to buy Smartline.
About $32K plus GST is needed for Mortgage Choice.
Both franchises are members of FCA (Franchise Council of Australia) and the initial fees cover: training, business equipment (including laptop), insurance and setup costs.
The working capital is minimal and you have to own a car (some franchisors even offer car leasing programs). Generally, mortgage broker franchise is a good investment. The financial risk is small and the returns do have potential to support the family.