IFPG – INTERNATIONAL FRANCHISE PROFESSIONALS GROUP – ONE SPECIFIC GROUP IS TAKING A NEW APPROACH TO FACILITATING THE SALE OF FRANCHISES
With a membership that Founder Don Daszkowski says numbers approximately 750, the International Franchise Professionals Group (IFPG) has the requisite knowledge and experience to connect potential franchisees with franchises that suit them using franchise brokers.
In a recent interview from the IFPG office in New Jersey, Daszkowski said the IFPG membership consists of approximately 45 percent franchisors, 45 percent franchise brokers, consultants and business brokers and 10 percent vendors, and other franchise professionals like attorneys and lenders.
In operation for almost three years, the IFPG primarily connects franchisors and franchise brokers and consultants to help facilitate the sale of franchises to deserving entrepreneurs. It also helps with any tasks involved with the sale of a franchise to a client, whether that’s lending, accounting, attorney services, lead providers or anything else that may be required to sell a franchise to a franchisee.
As a membership-based organization, the IFPG does not charge any kind of upfront fee to their members. Instead, it charges a small monthly membership fee to all members. IFPG brokers and consultants are paid a commission every time they sell a franchise from the IFPG portfolio and IFPG vendors help both parties to facilitate the transaction. Each member is working for the same cause which is to award new franchisees.
Daszkowski said there is a need for this service because the franchise market seems to be leaning more and more toward the use of franchise brokers. For example, Menchie’s Frozen Yogurt is an IFPG Member and Don recently spoke to Michael Mudd the Senior Development Manager about his experience growing Menchie’s by using brokers. Michael stated “We have approximately 500 franchisees, which own 475 locations and another 315 in active phases of development. 230 of these franchisees were recruited with franchise consultants accounting for roughly half of our franchise system.” Menchie’s is seeing tremendous growth and roughly half of their franchise system was built using brokers and consultants.
“The value of working with franchise brokers has been tremendous. The relationships we’ve developed have accounted for approximately 50% of our system. We look forward to continuing to bolster those relationships in the future, as they are truly a dynamic attribute to our expansion,” said IFPG Member and Vice President of Franchise Development for Hand & Stone Massage & Facial Spa, Bob McQuillan.
“I really feel that the industry is accepting working with franchise brokers and franchise consultants and seeing that it is a big part of their business,” Daszkowski said.
The biggest differentiator between the IFPG and its competitors, the founder said, is the IFPG does not train brokers and consultants, plus it does not share in any commissions paid to brokers. Because it does not have to train brokers, the IFPG can eschew the large fees other franchise brokerages charge. The IFPG can focus 100% percent of their time supporting their members without the worry of recruiting and training new brokers, while the brokers can have the freedom to work independently and keep 100% of their commissions.
But that’s not to say that the IFPG’s brokers are untrained. Quite the contrary, not just anyone can be a broker at the IFPG. They are screened and only the ones who are seasoned and experienced professionals get accepted into the IFPG, meaning its franchisormembers know they are dealing with the best brokers in the business.
“We’re more an industry changer than we are a competitor of anyone,” Daszkowski said.
Tools for Brokers
From his experience in the past working with business brokers, the IFPG founder knew that franchise brokers needed better tools to be able to do their jobs successfully. Daszkowski realized that there could be better tools developed to help franchise brokers target specific franchise opportunities for their clients.
This prompted him to develop the IFPG Lead Feed. If brokers have a client and they can’t find a specific franchise that their client is interested in, or can’t find one that’s a good fit for them or in the right territory, they can now put their client’s info into the IFPG Lead Feed. Once the potential franchisee’s information is in the Lead Feed, franchisors can then scroll through these clients and see if any of them might be a good fit for their franchise. This technology also alerts the franchisor of these specific matches.
A profile that a broker submits to the Lead Feed would provide information like the potential franchisee’s work history, how much capital they have at their disposal, where they are looking for a franchise and what type of business opportunity they are interested in.
“That’s just one of the things we’ve done to help franchise brokers more efficiently communicate with franchisors with the hopes that they can close more deals with some of the technology that we provide,” Daszkowski said.
With the franchising industry seemingly leaning more toward the use of franchise brokers, the IFPG seems in a good position to keep growing and keep helping connect franchisors with franchise brokers so they can find the right franchisees to expand their businesses.