Digital Rocket: 4.9/5 on Clutch · Free tool
A broker offer is a success fee plus any fixed network costs, plus your team's time. Enter two offers and see what each signed agreement really costs, and how many signings a year it takes for the fixed costs to pay off.
Cost per broker-sourced signed agreement
A flat fee, if entered, is used instead of the percentage. Sales time is an allocation: total hours on broker candidates, including those who didn't sign, divided by signings. Fixed costs are spread over the signings you enter. These are your assumptions, not market rates.
Book my free diagnosticThe success fee is paid when an introduced candidate signs. Membership, portfolio and event costs are paid whether anyone signs or not, so their share of each agreement depends on how many agreements the network produces. Your team's time on introduced candidates, including the ones who don't sign, is a cost too.
A lower success fee with fixed costs only pays off above a certain number of signings. Below it, the higher percentage costs less per agreement. If your own history doesn't support that many broker signings a year, the fixed-cost offer is the expensive one.
Ask how the network charges for additional units. Report cost per signed agreement and cost per awarded unit as two separate numbers.
Ask each network for its full fee schedule in writing. Contract terms are for your franchise counsel.
Related
Questions franchisors ask
No. Structures vary: a percentage of the franchise fee, a flat success fee, membership or event costs, or a mix. Model the offers on your desk with your own numbers.
Yes. Reps spend time on every introduced candidate, signed or not. Leave the hours blank if you don't track them, but the comparison is less complete.
No. The calculator runs in your browser; nothing is sent anywhere.
Yes. Tracking every source to signed agreements is part of the system build. See pricing.