How To Become A Franchise Broker In India?
Written by: Kiran James
In this article, we will discuss the various steps and procedures one must go through to become a franchise broker in India. If you are considering getting into the business of franchising, learning how to become a franchise broker in India can guide you through the process.
Becoming a franchise broker in India is more than just a dream. When you really think about it, becoming a franchise broker is not all that difficult as far as the process goes. Although there are many obstacles to overcome and many procedures to follow, at the end of the day, it's just a matter of being prepared for the journey ahead. As an entrepreneur and aspiring franchisor in India and elsewhere, one might frequently wonder: How can I become a franchise broker? How can I go about applying for this term? How should I go about my application process with respect to franchise? What are the prerequisites? What sort of formalities do they require before giving their final decision? These are some of the questions that always come to mind when attempting to fulfill one's life-long dream of becoming a franchise broker.
Who is a Franchise Broker?
A franchise broker is a person who, through their marketing and sales skills and financial acumen, acts as an agent in promoting a business model to potential investors who wish to start their own franchises in other countries.
It is not necessary to have a long list of qualifications to become a franchise broker. The franchise brokerage firm can be started by anyone who builds good relationships with a large number of franchisors and franchise companies. The franchise consultant is an expert in the franchise industry. The franchise brokers are paid a fee for their services by the franchise. The primary difference between a franchise consultant and a franchise broker is that while the consultant advises the franchise helping them to develop certain aspects of the business on the other hand a franchise broker acts as a medium between the franchisor and the franchise for the smooth going of all the process that is required.
If In order to become a franchise broker, you should look for these qualities in a training program. Experts recommend starting with a strong business background. Accounting, finance, economics, business administration, and marketing are the best undergraduate degrees for the industry. Franchise brokers do not require formal degrees, but professional certifications will enhance their credibility.
How Much Does A Franchise Broker Make In India?
While there isn't a specific amount that a franchise broker could make, the average income of a franchise broker can range from 1.3 lakhs to 4 lakhs per annum. A franchise broker makes money from the commission he receives every time he helps the franchisor to find the right franchise. Each franchise has a different commission rate and can depend on the size and appeal of the franchise in the market the bigger the franchise the greater the commission. The question is, is it worth being a franchise broker? Totally depend on the skills of franchise brokers while some brokers with their excellent communication and economical skills make a pretty good amount of money there are other brokers who struggle to meet their end needs.
In order to be a successful business concept, franchising relies on perfect matchmaking between franchisors and franchisees. Franchise brokers facilitate this matchmaking exercise between franchisors and entrepreneurs. Franchise brokers, however, are often referred to as franchise consultants. It is true that both help to find the right partners for franchising, but these are entirely different things.
Rather than being franchise experts, franchise consultants charge fixed fees to franchisors for the privilege of being hired, whereas franchise brokers are not franchise experts but are paid commissions to finding perfect franchisees for franchisors.
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