Franchise broker for buyers evaluating a franchise
A franchise broker works with people who want to buy a franchise. The broker helps you decide what you are looking for, narrows the brands worth studying, reads each Franchise Disclosure Document with you, and keeps your attorney, lender, and the franchisor working from the same information.
If you searched for franchise brokers near me from somewhere in Texas, Forge works with buyers across the state, remotely or in person. This page explains what the work covers, how Forge is paid, and what a franchise broker should never do.
What a franchise broker does for a buyer
The work follows the order of a buyer's decision, from the first question about goals to the final review with your attorney.
Clarifying goals and capital
What you want the business to do for you, the role you want to play, how much liquid capital you can commit, and how much you would borrow. Every later step depends on these answers.
Narrowing brands
Turning a long list of franchise concepts into a few that fit your goals, budget, and skills, and setting aside the ones that do not before you spend time on them.
Reading the FDD with you
Working through each brand's Franchise Disclosure Document item by item, so you know what the fees, obligations, and disclosures mean before you meet the franchisor.
Validation calls
Preparing questions for current and former franchisees listed in the FDD, and helping you compare what different owners tell you.
Financing options
Explaining the common ways buyers fund a franchise, such as SBA loans, conventional bank loans, and cash, so you can talk to lenders early.
Coordinating with your franchise attorney
Keeping your questions, the FDD, and the franchise agreement organized for your attorney, who reviews the documents and advises you on them.
The FDD items a franchise broker reads with you
The Franchise Disclosure Document has 23 items. These nine carry most of the information a buyer needs to compare brands. Our buy a franchise guide covers the 14 day rule and the rest of the buying process.
Item 5
Initial fees
The initial franchise fee and any other fees paid before opening, and whether any are refundable.
Item 6
Other fees
Royalties, advertising fund contributions, technology fees, transfer fees, and other recurring charges.
Item 7
Estimated initial investment
The franchisor's estimate of what it costs to open, including additional funds for the first months of operation.
Item 11
Franchisor's assistance
Training, opening support, advertising, and the systems the franchisor provides, and when it provides them.
Item 12
Territory
Whether you receive a territory, what protection it offers, and what the franchisor may do inside it.
Item 17
Renewal, termination, transfer, and dispute resolution
How the relationship can end, what renewal requires, how you could sell later, and how disputes are handled.
Item 19
Financial performance representations
Any earnings or performance information the franchisor chooses to provide, with its basis and assumptions.
Item 20
Outlets and franchisee information
Openings, closures, transfers, and the contact list for current and former franchisees you can call.
Item 21
Financial statements
The franchisor's audited financial statements, which show whether it can support its system.
How Forge is paid
[CONFIRM HOW FORGE IS COMPENSATED ON FRANCHISE PLACEMENTS]
Ask any franchise broker how they are paid before you begin: who pays them, when, and whether the brands they show you are limited to those that pay them. The answer tells you how to read their advice.
What a franchise broker does not do
- Give legal or tax advice. Your franchise attorney and CPA do that.
- Guarantee results. No one can promise that a franchise will succeed.
- Make earnings representations about any brand.
Under the FTC Franchise Rule, a franchisor may make financial performance representations only in Item 19 of its FDD. If a brand's FDD has no Item 19 figures, no salesperson, broker, or franchisor representative should give you earnings numbers for it. Ask current and former franchisees about their experience instead, and have your CPA review what you learn.
Why Forge's franchise brokerage work focuses on Texas buyers
Some states regulate the people who sell franchises, including franchise brokers, with their own registration or filing requirements. For that reason, Forge's franchise brokerage work focuses on buyers in Texas. If you plan to open in another state, check that state's rules with your franchise attorney. Our franchise laws by state guide summarizes state franchise registration and filing requirements, and the Texas franchise laws page covers Texas.
Questions about working with a franchise broker
What does a franchise broker do?
A franchise broker works with people who want to buy a franchise. The work covers clarifying goals and capital, narrowing brands, reading the Franchise Disclosure Document with the buyer, preparing validation calls with existing franchisees, explaining financing options, and coordinating with the buyer's franchise attorney.
Are there franchise brokers near me in Texas?
Forge works with franchise buyers across Texas. Meetings can be held remotely or in person, and the FDD review and validation calls work the same way wherever you live in the state.
How is a franchise broker paid?
Ask every broker before you begin who pays them, when, and whether the brands they show you are limited to those that pay them. Forge describes how it is paid in the How Forge is paid section on this page.
Can a franchise broker tell me how much I will earn?
No. A franchise broker does not make earnings representations. Under the FTC Franchise Rule, a franchisor may make financial performance representations only in Item 19 of its FDD. If a brand does not include an Item 19, no one should give you earnings figures for it.
Do I still need a franchise attorney if I work with a franchise broker?
Yes. A franchise broker does not give legal or tax advice. A franchise attorney should review the FDD and the franchise agreement before you sign, and a CPA should review the financial side.
What should I have ready for a first conversation?
A sense of the kinds of businesses that interest you, the role you want to play, roughly how much liquid capital you can commit, how you would finance the rest, and when you would like to open.
Send a buyer profile
Tell us what you are looking for. Your profile stays confidential, and we will reply with the questions we need answered for a first conversation.
Comparing franchise brands?
Send a buyer profile and Forge can work through the brands and their FDDs with you before you sign.