Transworld Business Advisors franchise

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Transworld Business Advisors are a franchised consulting organisation. They help small business owners to grow, buy or sell their businesses. Transworld claims to have sold more than 10,000 businesses since 1979 and have over 500 brokers and more than 200 offices worldwide.

Transworld Business Advisors business details

Launched in 1979 and headquartered in West Palm Beach, Florida, Transworld Business Advisors have offered franchise opportunities since 2010. The company specialises in the brokerage of small and medium sized businesses, acting as advisors to help business owners get the most from the businesses they own. They are largest organisation of this type in the UK, and they claim to be the #1 franchise in the sector according to Entrepreneur magazine.  

Transworld Business Advisors at a glance:

  • Worldwide stores: Approximately 500
  • Required Investor net worth: not stated
  • Required investor liquid cash: £100,000
  • Min. investment: £50,000
  • Max. investment: £122,000
  • Standard franchise term: 35 years

Can I start a Transworld Business Advisors franchise?

With only £100,000 in cash and no minimum net worth required, plus a highly affordable cost of entry, getting into a Transworld agency is not difficult. However, there is one consideration that may be a barrier for some potential franchisees; although Transworld state that previous business broker experience is not essential, some states require that business brokers have a real estate license. This means specialised training may be necessary depending on your location. Transworld also expects their franchisees to have direct involvement in managing their agency. This opportunity is not suitable for passive investment.

How much does a Transworld Business Advisors franchise cost?

Start-up costs to begin a Transworld Business Advisors begin at £50,000 and rise to a maximum of £122,000 – a cost range that ranks as low. The company states that franchisees need no special inventory or equipment to get started, but you will still need an office, a technology package and an advertising budget, as well as all the usual items that go with a professional services business – office supplies, insurance, furniture, etc.

The initial franchise fee is £30,000. Military veterans may be eligible for a 10% discount off this cost.

After opening, you are required to pay an array of ongoing fees and charges. They include:

  • Royalty fee: 8% of gross sales or the greater of a flat fee that ranges from £300 to £900
  • Marketing fund: £165 per month
  • Marketing co-operative fund: Currently £0
  • Transfer fee: £34,500 for transfer of first designated area 
  • Renewal fee: £1,500
  • Agent fee: £150 per month for first agent, then £100 each additional agent
  • Salesperson training fee: £495
  • Franchise resale program: 10% of sale price
  • Audit: Actual cost of audit

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Estimated key costs to open a Transworld Business Advisors franchise:

Key Costs GuideLowHigh
Franchise fee£30,000£30,000
Training expenses£210£550
Marketing fund – initial contribution£500£500
Office lease£900£7,900
Initial local advertising£3,000£6,000
Software and supplies package£19,995£19,995
Equipment and office software£600£2,500
Additional costs – first six months£15,000£50,000

Are Transworld Business Advisors franchises profitable?

Yes. Average annual gross revenues for a UK-based Transworld agency were £345,000 in 2023. Profit margins on consulting tend to be generous, often as high as 30% or more. A moderate net profit of 25% on the revenues stated above would be £86,000 per year – which indicates that you could recoup your typical investment in less than two years. This ranks as good.

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What are the franchise territory policies for Transworld Business Advisors?

Franchisees are granted the right to operate a Transworld agency within a designated marketing area that contains 8,000 or more businesses. Franchisees must confine all their agency-related activities to their designated marketing area. While franchisees are not restricted from accepting clients from outside the designated marketing area, they must restrict the targeting of public relations, promotional, sales and marketing activities and the activities of their agents to individuals and businesses located within the designated marketing area. The designated marketing area is exclusive. Transworld promises not to open or operate any company-owned agencies and/or grant additional franchisees the right to open or operate a business brokerage within the designated marketing area during the term of the franchise agreement.

What franchise resources does Transworld Business Advisors offer?

Transworld Business Advisors support for franchisees includes:

  • Training: Prior to opening a Transworld agency, franchisees must attend and complete an extensive initial training program. Additional on-the-job training is conducted with franchisees in their designated marketing area following completion of the classroom training. Transworld also conducts a training program for the franchisee’s salespersons, and every 12-18 months they host a convention for franchisees. 
  • Marketing support: Transworld provides promotional and other marketing support for their franchisees.
  • Third-party financing: Transworld provides no financial support for investors seeking franchise funding. Alternatively you may be able to obtain economical and flexible funding solutions from the many independent funders who provide business loans to franchise operators.

Why should you start a Transworld Business Advisors franchise?

Low start-up costs, good profits and a fast repayment of investment point to an attractive business opportunity. Many small business owners have been selling up in the wake of the Covid-19 pandemic, so there is also scope for significant revenue growth. The only negative point is the need for franchisees to manage their workforce well. Like all service businesses, your biggest assets are your employees, and they can depart at short notice leaving you with a hole in your capability. Keeping your staff happy will be key to success. People skills are just as important as business skills with this opportunity.

What is the process for starting a Signal franchise?

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Written by

Chris Godfrey

Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance.

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