Open for business: Improving corporate profit will drive demand for industry services

The Franchise Brokers and Consultants industry has experience modest growth in the five years to 2016, as rising consumer spending and growth in the total number of US businesses have helped increase the potential pool of franchisees and franchisors, which commonly demand industry services. Demand for franchise broker and consulting services was also driven by steadily rising corporate profit margins, which have allowed businesses to expand their operations and embrace more franchise opportunities. Moreover, historically low interest rates and increasing access to credit have made franchise ownership more affordable during this period...purchase to read more.

Industry Statistics & Market Size
Revenue
$187m
Annual Growth 11-16
2.7%
Forecast Growth 16-21
Profit
Employment
1,507
Businesses
561
Market Share of Companies

Industry Threats & Opportunities

  • Expansion in US business and franchising activity is driving industry demand
  • Improving business conditions enticed more brokers and consultants into the industry
  • As business activity picks up, demand for consultant services is expected to rise
  • Industry Report - Industry Products Chapter

    Commissions for transacted dealsFranchise brokers are primarily paid a commission, which they receive from the franchisor upon the successful sale of a business. Accordingly, industry operators typically earn up to 50.0% of the franchise fee paid to a franchisor. The franchise fee is an upfront, lump sum payment by the franchisee to the franchisor for the privilege of using a businesses' name and other support services. These fees vary widely and can be as low as $10,000 or in excess of $100,000, depending upon the type of business and operating location. According to Entreprenuer.com, franchise brokers typically receive minimum fees of roughly $12,000...purchase to read more.

    Additional Insights for the Franchise Brokers & Consultants Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Franchise Brokers & Consultants Industry are

  • Having a high prior success rate
  • Ability to carry out credit checks on clients
  • Proximity to key markets
  • IBISWorld analysts also discuss how external factors such as Number of businesses and Corporate profit in the Franchise Brokers & Consultants industry impact industry performance..

    shopping_cartPURCHASE OPTIONS

    What's in this report

    What is the Franchise Brokers & Consultants Industry?

    This industry includes salesmen and brokers that provide introduction services for franchise opportunity sellers with whom they have worked out pay-for-sale agreements. In addition to advice, companies in this industry may also offer franchise research, education and other informational services.

    Industry Products
  • Commissions for transacted deals
  • Marketing
  • Residual fees
  • Other services
  • Industry Activities
  • Providing introduction services for franchise opportunity sellers
  • Offering franchise research, educational and information services
  • Acting as intermediary between potential franchisee and franchisors
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Number of businesses
  • Corporate profit
  • Consumer spending
  • Number of broadband connections
  • Access to credit

  • Current Performance
  • Business activity, consumer spending increase
  • Competition increases
  • Chart: Revenue Growth

  • Industry Outlook
  • Consumer spending, business activity continue
  • External competition still a factor
  • Table: Franchise Brokers & Consultants Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Franchise Brokers & Consultants Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Commercial Leasing
  • Credit Bureaus & Rating Agencies
  • Office Supply Stores

  • Products & Services
  • Commissions for transacted deals
  • Marketing
  • Residual fees
  • Other services
  • Chart: Franchise Brokers & Consultants Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumer and business services
  • Retail
  • Restaurants
  • Recreation, leisure and hospitality
  • Chart: Major Market Segmentation for the Franchise Brokers & Consultants Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesOther
  • Chart: Cost Structure Benchmarking – Sector vs Franchise Brokers & Consultants

  • Basis of Competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Franchise Brokers & Consultants Industry

  • Industry Globalization
    FranNet LLC,
  • Table: FranNet LLC - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Franchise Brokers & Consultants Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Franchise Brokers & Consultants Industry
    Includes:
  • Industry Revenue (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Wages (2007-2021)
  • Number of businesses (2007-2021)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Franchisee
  • The individual, or party, that purchases the right to run a franchisor's business model in a franchising agreement.
  • Franchisor
  • The company that allows an individual (known as the franchisee) to run a location of their business.
  • Pay-For-Sale Agreement
  • An agreement outlining the price that a franchisor accepts for the purchasing of a franchise
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Franchise Brokers & Consultants Industry Research Report contains up-to-date data and analysis, allowing you to identify the strengths and potential weaknesses of major companies in the industry. Build your credibility with clients and prospects by sharing insights into the current and emerging trends driving their industry. Our market research gives you the tools to win new business and keep existing clients.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Franchise Brokers & Consultants:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Franchise Brokers & Consultants market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Franchise Brokers & Consultants, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

    Contact Us

    Want to speak to a representative? Call us.

    clear