In today's high tech world aspiring franchisees surf the Internet to learn about franchise opportunities. Invariably, these future entrepreneurs land on sites which feature franchise opportunities and franchise resources.

They also land on sites which are self described as "franchise consultants". These sites indicate that their primary service is to advise prospective franchisees about which franchise opportunity best fits the candidate's profile and objectives. They also state that there is no charge for this service. The franchise fee is the same fee that an individual would pay if they were to deal directly with the franchisor since the franchise brokers are paid a commission by franchisors.

When, properly utilized franchise brokers can provide a valuable service for those individuals looking to buy a franchise. Many of these firms may have an inventory of over 200 franchise opportunities.

Here are some tips to follow when using a franchise broker:

1. Know the type of franchise you're interested in before contacting the broker.
2. Do your home work on the subject of franchising before you get started. There are resources available from the International Franchise Association and other sites on the Internet.
3. Since franchise brokers represent a number of franchisors and receive a commission for each transaction some brokers will try to steer a franchise candidate to a particular franchise opportunity.
4. The franchise broker can be a data gathering source for specific franchise information. Utilize the broker to provide you with key information pertaining to the franchises that appeal to you. This can save you valuable time and will serve to measure how knowledgeable the broker is.
5. Be sure to stick to your financial capabilities. Purchasing a franchise can be somewhat similar to buying a house. Don't exceed your financial capabilities, because a particular franchise opportunity dazzles you.

There are a number of franchise broker companies that provide a valuable service to individuals who are looking to acquire a franchise. The key advice for the future franchisee is to know what you want, do your homework and don't exceed your investment capabilities.

The preceding article discussed how a prospective franchisee can benefit by using a franchise broker. The flip side of this subject pertains to the use of franchise brokers by franchisors. The use of franchise brokers by franchisors has grown dramatically over the past 10 years. Survey results indicate that approximately 40% of franchisors use franchise brokers. By franchisor brokers, I refer to firms with a broker network versus the sole proprietorship. An interesting fact is that the use of brokers is not limited to a particular size franchisor, but rather the smallest to the largest franchisors will use franchise brokers.

For start-up franchisors utilizing brokers can be a boost in starting up your franchise system. The challenge start-ups face is that many franchise broker firms are reluctant to market franchises represented by a brand new franchisor.

Here are some tips regarding the use of franchise brokers:

1. Since franchise brokers require a commission that can represent up to 50% of the initial franchise fee some franchisors refrain from using brokers. However, since these brokers don't have an exclusive arrangement to sell your franchise you can still recruit and sell franchises yourself and use other brokers.
2. The franchise broker gets paid when the franchise fee is actually paid to the franchisor so there is no cost to the franchisor unless a franchise transaction is actually done.
3. Many franchise brokers are willing to negotiate the commission within reason. Shop around a bit to be sure you get a fair deal. However, your end goal is to have new franchisees so a great deal with a broker network which doesn't produce is of little value.
4. Try to avoid retainers or up front fees paid to the broker company. Many will request a monthly retainer but most don't require it.
5. Be prepared to provide the broker firm with your UFOC, franchise sales packet and other promotional materials.
6. Coordinate your use of franchise brokers with your franchise attorney since there are disclosure requirements pertaining to the use of franchise brokers.
7. Maintain control over the franchise sales process. Don't delegate the in-depth sales role to the broker, including disclosure. What you want is a qualified prospect that is familiar with your franchise opportunity. An individual franchise broker is motivated by a commission and does not work for the franchisor.
8. Have your franchise attorney review the broker contract to be sure you're protected. The larger franchisors typically utilize their own broker agreement in order to protect themselves and hold the broker company accountable for certain activities.

A recent article by Stephen Ohlemacher of the Associated Press details the continuing shift in the US population. Recent information to include Census Bureau estimates show that the nation's population continues to shift south and west especially to suburbs which are distant from the metro areas.

The fastest growing county in the US was Flager County, Florida which is north of Daytona Beach. Flager grew by 10.7 percent and since the year 2000 has increased in population by 53 percent. This rate of growth is faster than any county for the current decade.

Here are some more interesting facts:

• Rounding out the top five counties in growth were, Kendall County, Illinois, Lyon County, Nevada, Rockwall County, Texas and Washington County, Utah
• Thirteen of the 20 fastest growing counties are in the South, four in the West and three in the Midwest. Only one county was in the Northeast, Pike County, Pennsylvania.
• The suburban counties are growing much faster than the US population growth rate of 1% per year.
• Los Angeles remains the nations largest county with 9.9 million people
• Maricopa County home to Phoenix and Scottsdale, Arizona increased by the most people, 137,000.

According to Alan Pisarski, author of "Commuting in America" " As the jobs move farther out, frequently driven there by the need to access skilled people, that frees up more people to move even farther out." There is no doubt that the migration from the large metropolitan areas continues.

Throughout my franchise career I've been involved in constructing key elements of franchise agreements which I would forward on to my franchise attorney for drafting. After the usual exchange of comments and corrections the final franchise agreement would be completed.

I would like to offer some advice for start up franchisors who are developing a new franchise program, and existing franchisors who are in the process of amending their current agreement. You don't need to be a franchise expert or an attorney in order to contribute to the formulation or revision of your franchise agreement. What you do need is to exercise some good old fashioned common sense and to use the expertise of your franchise attorney the right way. Here are some tips:

Step 1 Know your competitor's franchise program. Whether you use a spreadsheet or simple pad of paper record the key attributes of their franchise agreements: Number of franchisees, investment range, initial fee, royalty fee, advertising fee, franchise term, renewal term, territory, training program,etc. If you feel that your franchise concept is so unique that you don't have direct competitors then consider those franchises which compare from an industry and investment standpoint. Information is available from franchise directories or you can obtain a UFOC from companies like franchisehelp.com or from the State of California Corporate Web-site where you can retrieve the document for free providing the franchise is registered in CA.

Step 2 Add some appeal to your franchise that will provide an advantage over more established competitors. Perhaps your initial franchise fee can be lower, your royalty payment a percent less, a longer initial franchise term or perhaps a larger territory. The important point is to have some advantage over your competition that can help you sell franchises. As a start up franchise its difficult enough to sell that first franchise without a prospective franchisee comparing you to a more established competitor.

Step 3 Remember, you can always make changes to your franchise agreement. Some franchisors are concerned that if they change certain terms of their franchise agreement that new franchisees might get upset. My response is simple: " The first group of franchisees were the pioneers and as such they were able to obtain more favorable terms than their successors." I never met a franchisor who didn't make changes to their agreement, keep this fact in mind when starting up a new franchise.

Step 4 Balance the salability of your franchise with the contractual protections you require. There is a fine line between a franchise agreement that will not turn off prospective franchisees and their attorneys versus the desire of the franchisor and franchise counsel to be well protected. The term attorneys use is "belt and suspenders" which describes contract language that is very strict and covers every possible contingency. Many start-up franchisors make changes to their agreement after their first year in order to achieve this balance. In some cases, this is done by "softening" certain provisions and even eliminating objectionable language. An experienced franchise attorney in combination with savvy franchisor management can achieve the proper balance to their franchise agreement. Franchisor management needs to communicate their objectives to franchise counsel. When management requests a "tough" franchise agreement, than the role of the franchise attorney is to fulfill that request. If there are objections by franchise candidates and their attorneys don't blame your attorney for doing their job. Franchisors need to guide franchise counsel in fulfilling their role, which is to write an agreement that protects the franchisor, complies with the rules of law and will be generally acceptable.

" Common sense often makes good law." William O. Douglas

From Everybody's Business by Ben Stein "Cell Phones in Flight? This Means War!"