Franchise Update Magazine Issue IV, 2012 | Page 37

• Brokers. The results on the use of brokers by this year’s
survey participants are mixed. The number of respondents using broker networks declined to 44 percent (from 56 percent
in 2011 and 57 percent in 2010). However, the number of
those closing deals through brokers rose to 70 percent, from
67 percent in the two preceding years; and the median broker
commission of $13,500 dropped from the $15,000 reported in
the previous two years. The median of applications to sales (5
percent) was up from 3 percent in 2011, but lags the 8 percent
reported in 2010. Two ongoing advantages in working with
brokers: 1) with budgets still tight, franchisors don’t need to
invest as much up front, and 2) brokers bring in additional
qualified buyers franchisors would never have gotten otherwise.

• Profiling tools. Almost half (48 percent) of franchisors
reported that profiling tools have helped increase the quality
of their new franchisees. That compares with about 20 to 30
percent of franchisors using profilin