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For aspiring business brokers, the decision between joining a franchise brand or operating as an independent can feel overwhelming. Each path offers unique advantages, challenges, and long-term considerations. The question many business owners and future brokers ask is simple: Franchise vs. Independent Business Broker – Which model wins?
The answer depends on your goals, resources, and preferred way of working. Below, we’ll break down the benefits and drawbacks of both models, helping you make a more informed decision.
When you buy a franchise, you’re investing in more than just a name – you’re gaining access to an established business model, proven marketing systems, and national brand recognition. For many new brokers, this foundation provides a clear path forward.
1. Brand Recognition and Trust
A strong franchise brand carries credibility. This is helpful to those just starting out in the industry. Similar to real estate agents who choose to work with nationally well-known real estate brands, those starting a business brokerage franchise benefit from a strong and trusted brand
2. Training and Resources
With a business brokerage franchise, one can benefit from a strong training and onboarding program, which may include initial training, valuation tools, and ongoing resources that independent brokerages may struggle to replicate. These tools streamline the process of connecting buyers and sellers.
3. Marketing and Support
Franchise opportunities also include access to franchisor support, including marketing resources, technology platforms, coaching, and other programs. This reduces the learning curve and enables new brokers to compete effectively.
4. Proven Business Model
Signing a franchise agreement connects you to a system that has been tested across markets. Instead of starting from scratch, you leverage strategies that already work.
1. Franchise Fee and Royalties
Buying into a franchise requires upfront costs which includes a franchise fee and ongoing cost such as royalty payments. While these costs cover resources and support, they reduce the broker’s net earnings compared to operating independently.
2. Less Flexibility
A franchised brokerage comes with rules. From branding tocodes of conduct and operational processes and procedures, franchisees must align with the franchisee’s guidelines. For entrepreneurial brokers who prefer maximum independence, this can feel restrictive.
On the other side of the debate, many brokers choose independence. Running your own brokerage means complete control over branding, fees, and business strategy.
1. Full Control
When starting independently, you’re essentially building from the ground up. You’ll need to create a comprehensive business plan, establish processes and systems, craft your marketing strategy, and decide on your fee structure. For some, that freedom and control is appealing. But for those who prefer a proven, turnkey model with built-in support, a franchise can save significant time and reduce risk
2. No Franchise Fee or Royalties
By avoiding franchise fees, independent brokers keep 100% of their earnings. However, the costs of running an independent operation—such as marketing, technology, and compliance—may quickly add up, narrowing profit margins. For experienced professionals with established networks, this may still translate into higher profits
1. No Built-in Brand Recognition
Independent brokers must build credibility from scratch. Without the backing of a franchise brand, it can take years of networking and marketing before local business owners view you as a trusted authority.
2. Limited Resources
Unlike franchise opportunities, independent brokerages are not able to leverage the strength and technology of a franchisor and would need to invest on an individual basis, which could be at a significantly higher cost.
3. Greater Risk
Without the proven framework of a franchised brokerage, independent brokers assume all the risk. If you lack experience or face challenges, there’s no built-in coaching or support system to help you adjust course—you’ll need to seek outside advisement, which can add to costs. For confident professionals with strong networks, this independence can be rewarding, but for others, the absence of structured guidance may limit growthReal-World Comparisons
The Franchise vs. Independent Business Broker debate mirrors trends seen in other industries, like real estate. Many real estate agents choose national brands for the credibility and leads they provide, while others thrive in boutique or independent firms where they maintain full control.
For business brokers, the same tension exists. Some prefer the consistency and training of a franchised brokerage. Others thrive in independent brokerages where autonomy is the priority.
Ultimately, neither model universally “wins.” The better choice depends on your situation:
Choose a Franchise Brokerage If:
You’re new to the industry, want structured support, and value brand recognition. If you’re willing to pay a franchise fee in exchange for training, marketing, and proven systems, franchising is a strong option.
Choose an Independent Brokerage If:
You may be better suited to go independent if you already have a strong professional network, can afford the systems and technology to securely manage transactions, and have the budget for staff or vendors who can handle marketing, contracts, and posting listings across multiple platforms and more to effectively run your brokerage practice.
Murphy Business, one of the largest and most respected business brokerage firms in the United States, offers franchise opportunities designed to balance independence with support. Franchise owners benefit from the credibility of a strong franchise brand, while still enjoying the flexibility of running their own business.
With a Murphy Business brokerage franchise, you can work for yourself without having to go it alone. Murphy provides built-in training, resources, and support that empower franchisees to compete effectively in their markets. What sets Murphy apart is its collaborative culture—franchisees benefit from the knowledge and experience of the entire network. This teamwork-driven approach not only strengthens individual performance but also creates greater opportunities for long-term growth and success.
The debate between franchise and independent business broker models comes down to priorities. Independent brokerages offer freedom, flexibility, and the potential for higher profits—but that independence also means starting from scratch and figuring everything out on your own, which can require more risk, cost, and effort. Franchised brokerages, on the other hand, provide brand recognition, training, and ongoing support—though this comes with franchise fees and a more structured model that still allows some independence within defined guidelines.
For professionals looking to enter the field, exploring franchise opportunities with a trusted brand like Murphy may provide the ideal blend of guidance, reputation, and entrepreneurial control.
