Less than a decade ago the use of such franchise services, like franchise consulting was more the exception than the rule. Today, however, there has been a tremendous increase in the number of people who are using these services to purchase franchises, and as a result, as many as ten % of all franchises sold are done so through a brokerage firm. In order to decide whether or not you should use one is a decision you should make after doing some research.

One reason for this increase is because of the Internet. Prior to being able to search the web, people had to use a franchise directory, newspapers, industry trade shows and magazines to get their franchise information. While many directories have many different franchises listed and trade shows do attract some buyers and sellers, information about franchise availability was pretty limited. Today, however, there are over 3,000 active franchise business opportunities listed on the Internet at any given time. It has been said that if you were to check out each one 365 days a year, twenty-four hours a day it would take you about ten years to get through the list.

Information overload of this sort can make it very hard to sort through all of the available franchises in order to make a good choice, which is one reason why people will use franchise services like franchise business brokers. Those who are trying to sell their franchise, as well as brokers, are finding it more costly and difficult to afford any kind of effective advertising. One reason for this is the increase in cost for things like pay per click advertising. As well, it has also become more difficult for brokers to find good qualified leads for their clients.

One benefit of using these brokers is that while a franchisor has only one thing to offer a potential client, a broker has literally hundreds of opportunities from which to choose. An average brokerage network is much like a franchise in itself; they are marketing individual brokers as consultants, touting them as agents acting in the best interest of the buyer. However, a franchise consulting group usually represents hundreds of different opportunities with a wide price range and some feel they will only suggest those that offer higher commissions.

Franchise services such as these will usually offer their brokers even more perks for closing bigger and better deals, so while many of them do have the prospective buyer’s best interest at heart, there are some that will be influenced by these outside benefits. Most people who want to sell their franchises will not have to pay a broker anything until the deal is signed, making it more attractive to them than spending their own money on advertising.

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