How Scenthound Chooses and Works with Franchise Brokers
We asked Patti Rother, Vice President of Franchise Development at Scenthound, “What do you look for in franchise brokers, and how have you used them to find franchisees?”
To have a robust franchise development strategy in place, brokers are an essential component. While back-end closing costs may put a hit on a franchisor, brokers are ideal partners to help close a franchise agreement more quickly while providing additional support. This support is especially helpful for emerging concepts, as brokers conduct their own marketing and advocacy on behalf of the brand.
Overall, broker leads have greater chance of closing potential because they come to you as a warm lead, which is very different from traditional marketing leads.
Having a successful partnership with a broker network requires open and clear communication about your brand and defining ideal franchise candidate avatars. For Scenthound, we know that franchise brokers have great success in identifying candidates who are not yet part of a franchise system and are interested in reasonable multi-unit deals. This is where we’ve focused our efforts with franchise brokers, as our internal marketing teams work with potential leads who are already in the franchising world and have different personas and interests in the brand.
When bringing a new broker into your system, it’s best to consider them an extension of your team. For the relationship to be efficient and effective, you want to ensure they understand your brand and that you build a trusting dynamic with them, as they can ultimately help you close the deal and support your process.
When choosing a broker network, also consider the cultural fit. Make sure the brokers are engaged with your brand, and that there’s a successful working relationship. As a partnership, you’ll spend a lot of time educating and connecting with your broker teams, so making sure they are people you enjoy communicating with is important.
You also want to consider the size of the broker firm. If you’re looking for a larger network of national brokers that close deals across the country, select a larger brokerage. If you’re looking to grow in a specific geographic area, then you may want to consider a broker that has agents in smaller metro areas to help your specific focus.
Scenthound narrowed down our broker partners from seven to four throughout the past year as we became more selective. Now we partner only with broker groups that make sense for us and our overall goals. We looked for the success with the groups we were currently working with, as well as the unique nuances each provided.
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