The Problem with Franchise Portals

Written by: Patrick Findaro
Last Updated by Marina Longo: May 14, 2024
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This article is based on the video featured above, originally recorded for Vetted Biz Youtube Channel.

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Let’s talk about franchise portals

Patrick again, here. In today’s video, we’re going to go through the main problem with franchise portal. I’m going to go through a few different examples of why you might not want to get your information from a franchise portal. Now, first, let’s take a step back…

What are franchise portals?

A franchise portal is essentially a list of franchises. Keep in mind though, 90% plus of franchise portals, only show opportunities that they have some commercial relationship with.

franchise portals

There’s a conflict of interest

Whether they’re getting paid per lead that’s generated to that franchise or they’re getting a commission if you invest in the franchise, they’re only showing you limited opportunities and they’re going to highlight the opportunities generally that they’re getting paid the most on the top of the list, whether that’s a good franchise or not.

That’s an inherent issue with most franchise portals is there’s a conflict of interest. There’s an agency issue because they want to sell you the franchise, that’s paying them the most money. And they’re going to say everything positive about that franchise. So, you go forward with that franchise and the franchise portal makes more money. Now I can understand if they were even trying to be somewhat objective and showing some negatives, but I don’t see anything negative about 90% plus of franchise portals out there that have the franchises listed.

There’s nothing bad.

They don’t show failure rates.

They don’t show what the transfer rate is.

If it’s a new franchise, they’re not highlighting the founding year, there’s generally not a very set structure on things that are required to show to see that the franchise is a viable opportunity, or it’s not. You’d probably want to know if a franchise is growing super fast and it’s closing lots of locations along the way.

At we give you that information and for Vetted Biz members that pay a small monthly fee, you can see the comparables across different industries, as well as whatever franchise that is compared to all franchises.

And again, franchise failure rate, the franchise fee, royalty, marketing fee. You can see all these expenses and compare not just with 400 or a hundred franchises, but over 1,800 franchises. So, I do hope that the franchise industry evolves.

At Vetted Biz, we are bringing transparency to the franchise industry to get the most pertinent data to you

How are we different than other franchise portals?

As we don’t have a conflict, the franchises on our platform, again, there’s 1,800.

We don’t receive any direct payments from them. You can be rest assured, we’re going to show you the information you need to at least see if the franchise is worth your time reaching out to see if it’s a viable opportunity.

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