Brokers Will Grow Your Franchise – But it Takes Work and Commitment From You to Forge and Maintain the Relationships
If there is a question I hear the most, it is “How do I work with franchise brokers?”. And my immediate answer is “Don’t send them a brochure and expect a bunch of candidates!”.
Franchise brokers have become one of the top producers for many franchise brands. And while it may seem expensive to share a large portion of your initial franchise fee with them – remember that most candidates they refer are those that you would not have gotten through your own marketing efforts.
I have found in my experience that broker candidates are typically higher-caliber, better funded, and serious about starting a business. So keep sending them my way!
Those of us that have developed successful broker programs within our brands know that it takes a ton of work and strong on-going communication to consistently produce results.
To begin with, it is a two-step process. First you have to educate the broker about your concept to get referrals – then secondly, you have to work with the broker to educate the candidate about your concept.
The more education you provide your broker friends on what your brand is about, who you are looking for, and where you want to grow, the better results you will have.
5 steps for developing a successful broker referral program for your brand:
- The Offering – Develop a compelling, but realistic franchise broker offering concerning franchise fee sharing and broker listings.
- Education – Train your development staff on how to work with franchise brokers. Consistently keep your brokers informed on the status of a candidate and involved with the process. In addition, provide periodic webinars for your brokers to keep your brand fresh in their minds.
- Network Determination – Determine which broker networks you would like to work with. Broker networks vary on size, membership fees, and brand listing requirements. As well, there are many independent brokers that are not part of any franchise networks, so don’t forget about them.
- Cultivate Relationships – Develop personal broker relationships. Call them up and get to know them. Be sure to attend their network conferences and invite them to a Discovery Day to learn more about your concept.
- Keep Them Informed – Develop an on-going franchise brokers communications program. Consider them an extension of your frandev department and share any new updates about your brand. And make sure to keep your brand information updated on their portals.
In closing, let me share this… You don’t need 200+ brokers to grow your brand. Create strong relationships with 10-20 good brokers and they will grow your brand exponentially!
If you would like to know more about setting up a franchise broker program, give me a shout. Click here to schedule a call with me.
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