Franchise Broker Industry vs Real Estate Broker Industry

Comparing Real Estate vs Franchise Broker Industries

There is a saying, “green is the new black” when referring to something that’s “in”, “hip”, or “on trend”.  In fashion, it means that while black was once a staple of one’s wardrobe, green is the new staple.  When referring to businesses and investing, a “Franchise Broker” is the new “Real Estate Broker” and “Franchise Investing” is the new “Real Estate Investing”.

Franchise Brokering is growing at a much faster pace due to technology and resources available today that were not available in the early 1900’s.

See below how the two industries parallel. 

Real Estate Industry

Franchise Broker Industry

Started in the late 1800’s Started in 1987
MLS was created in 1967 FLS was created in 2008
 U.S. National Association of Realtors was formed in 1908 Franchise Brokers Association was formed in 2008
Definition:  “A real estate broker or real estate agent is a person who acts as an intermediary between sellers and buyers of real estate and attempts to find sellers who wish to sell and buyers who wish to buy.” Definition:  A franchise broker is a person who acts as an intermediary between Franchisors and buyers of a franchise and attempts to match the operational and opportunity characteristics of the franchise to the needs of the buyer.
Most states require a license to operate as a real estate broker Two states require a license to operate as a franchise broker
Broker may hire other sales agents to work under the broker Broker may hire other sales agents to work under the broker
“Real Estate Agent must take specific coursework (of between 40 and 90 hours) and pass a state exam on real estate law and practice.  Real Estate Broker must complete more course work and a broker’s state exam on real estate law must be passed. “ Franchise training requirements will depend on the network in which a Franchise Broker is associated with.  The level of training ranges dramatically between the different groups. Some networks give 1.5 days of training, while others give several weeks and includes ongoing training, franchise law practices and sales training.
2.3 million Realtors and Real Estate Agents 2,000 Franchise Brokers and Associate Brokers
Commission is 6% but may be split by the buyers agent, the broker of the buyers agent, the sellers agent and the broker of the sellers agent. Referral fees are typically 50% of the Franchise Fee.  Average franchise fees range from $20,000- $50,000.