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Should Brokers be Franchised?

brokerages

The editor of a business forum site asks if brokerages have any business franchising their brokers.

Sounding like a public relations writer for Murphy Business Brokers since no competitors are even mentioned, the editor of the Axiel business forum website writes about the benefits of franchising business brokerages.

Many believe the best strategy for smaller, independent M&A advisors and brokers is to join a franchise. "It is getting increasingly harder to provide great service to your clients as a small brokerage firm and a franchise system is a viable solution. Brand name recognition and economy of scale can make the process much simpler," said Roger Murphy of Murphy Business Brokers. – Axiel.net

And what is the biggest challenge to franchising brokers?

"One of the biggest challenges is the startup time it takes for new people to earn money — about 9 months or so," explained Murphy. "We try to shorten that process so that the franchise can become profitable as soon as possible."

Wouldn't it be nice to start being profitable within 9 months, say 4 months? Suweeet!

This sort of implied franchise earnings claim of nine months or better in the press sounds eerily similar to a sales technique used in job interviewing. The interviewer inevitably asks the interviewee for his biggest weakness. The interviewee in turn answers with a strength he thinks the interviewer wants to hear. "My biggest weakness?" thinks the job candidate out loud. "Well, I get so focused on doing a great job for my boss that I sometimes forget to go home and sleep at night during the weekdays."

What do you think? Do business and franchise brokerages, like FranNet or Murphy's, lend themselves to franchising? On a scale of weakest 1 to 10 strongest, how franchise-able are business brokers? Why?

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About Don Sniegowski

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Don Sniegowski is editor of Blue MauMau, the daily news journal for franchise & small business owners. Call him at +1 (270) 321-1268, tweet @bluemaumau or email don@bluemaumau.org.