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The information contained on this site is for information purposes only and we would like to think that any financial decisions you make now or in the future will be done so responsibly and via an authorized representative.
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 10% or more 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.
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.
While many brokers are truly interested in protecting a buyer's interest, they are also motivated by commissions and other benefits that may result from a signed contract. Those who are trying to sell their franchise are more likely to use franchise services, such as brokers, since the brokers do not make any money until the transactions is complete.
Additionally, it is much more cost effective, not to mention quite a bit easier, to hire a broker rather than spend their money on any kind of marketing in order to increase franchise profitability.
This is for informational purposes only you should always seek your own legal advise before buying any type of business.
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