How Does an Authorised Partner Franchise (Formerly Known as Sub-Broker) Work?

The world of finance is dynamic. Hence, the avenues for entrepreneurship are unlimited. Among the most exciting is the authorised partner (now known as the authorised partner) franchise model. It is an innovative structure that enables people to be a part of the trading ecosystem and, therefore, act as a link between investors and large resources of established brokerage firms.

As the financial landscape constantly changes, demand for customised investment services and localised know-how is rising and increasingly making authorised partner franchises an attractive choice for any aspiring business owner. In this article, we look at the intricacies of the model, pointing out the benefits, the working mechanism, and more.

What is an authorised partner Franchise?

An authorised partner franchise (now known as an authorised partner) is a business offering in the finance sector. Here, an authorised partner franchise business model allows individuals to enter the financial sector with lower risk while leveraging the support of a larger brokerage firm.

The authorised partner can protect the name and legal license to conduct the business of the franchisor, and through this, it can offer a whole range of financial services and products on behalf of the franchisor.

The authorised partner and franchisor relationship is central to this model, where both parties benefit through mutual cooperation and shared business goals.

Key Benefits of Being an authorised partner Franchise

Share of High Sales: The authorised partner retains a high percentage of the client-generated brokerage; the franchiser gets a low percentage of the brokerage.

• Investment Sector: A franchise for an authorised partner can be started with a minimum investment sum of Rs. 50,000, which is fully refundable. Only a security deposit is charged to the franchisee to cover all the franchisee’s expenses. The franchiser under which the authorised partner franchise is started doesn’t even request a minimum deposit in some situations.
• Support from Marketing & Training: The franchiser also supports the authorised partner with all kinds of marketing assistance, such as supplying posters, flyers, and branch hoardings. They also arrange workshops to educate their broker partners on various aspects of the business to ensure they know how an authorised partner franchise works.
• Advisory Support Program: Some franchisers also provide their authorised partners with guidance, inventory tips & suggestions to help benefit their clients, increase sales and ensure the operations of a franchise for an authorised partner are optimum.
• Item, Service & Deals: The authorised partner can also use any new products, services or deals introduced by the franchiser. This allows the authorised partner to continue to involve their clients with new services.

This training also covers in detail how authorised partner franchise operates within the broader brokerage ecosystem.

What Are The Conditions To Become an Authorised Partner?

Understanding how does an authorised partner franchise model work is crucial before stepping into this business. Here are some key requirements:

• The candidate should be 12th pass at a minimum, but ideally, a person should be a holder of a graduation degree.
• Knowledge and understanding of capital markets, and should have expertise in the management of transactions relevant to general finance.
• The candidate should have strong communication skills to convince the client to do business.
• The candidate should have recent information related to financial, economic policy and other related subjects that could impact the stock market.
• The candidate should have a basic knowledge of equity, commodities, mutual funds, currencies, etc., which is a must.

Functions of an Authorised Partner Franchise

Authorized partner franchises are very crucial in the financial market. It acts as a mediator between the clients and brokerage firms. Authorised partners provide multifunctional services.

• They acquire new clients through the process of inviting new investors to take up trading opportunities.
• Authorised partners guide and advise their clients one-on-one while making critical market trends and analysis decisions.
• They also look after the execution of trades, ensuring that all transactions are carried out effectively and efficiently.
• Authorised partners also maintain regular contact with clients, making inquiries and providing support in various trading operations.
• To increase client participation, authorised partners also conduct marketing on behalf of the franchisor, mainly through their local knowledge and contacts.
• They also ensure to meet regulatory expectations so that everything done through their operations falls within the framework of the law.

How Does An Authorised Partner Franchise Operate?

Authorised partner franchises operate as an independent entity or franchise of the brokerage firm and act as an intermediary that connects clients to the brokerage services, providing personalised assistance to the clients.

• The process starts with an authorised partner entering a franchise agreement with a franchisor where they can trade under the brand of the parent broker, the trading platform, and all other resources.
• Once the authorised partners have been established, they market their services to the investors.
• One of the ways that this is done is through seminars and social media marketing, whereas the other way is by appointment setting or individual consultation.
• Upon drawing the clients, authorised partners give them educational resources and insights so that those people would comprehend the intricacies of trading and their investment strategy.
• An authorised partner facilitates the execution of orders on the brokerage trading platform when traders carry out trading activities.
• Among the things they are required to do is ensure that all trades made go through correctly and in the shortest time possible. authorised partners also maintain close contact with their customers, keeping them abreast of the situation in the market as well as helping them wherever required.
• Often, the authorised partners have to be updated on regulatory changes and compliance needs. That way, the customers receive updated information from their advisors and rely on them loyally.

Moreover, the effectiveness of the authorised partner client acquisition process directly impacts the franchise’s overall performance and profitability.

Why choose IIFL for opening an authorised partner franchise?

IIFL Capital Services Limited is one of the leading players in the authorised partner franchise industry, with more than a million accounts being opened since its inception. The company provides execution, advisory, and research services across products like equity, F&O, Commodity & Currency, and Mutual Funds.

IIFL is also one of the top distributors of AIF, PMS and Mutual Funds. You can visit IIFL’s website to know the working of an authorised partner franchise and how you can open one with IIFL.

Conclusion

The franchise for an authorised partner in India is rising day by day since many people have recognised that if you are good with numbers, then you may have a great opportunity to make money. You need entrepreneurial skills that are very relevant for business growth and the achievement of goals every month. Different organisations use their efforts, experience, skills and resources to get the company through franchises such as the IIFL franchise. Therefore, the franchisee shall be allowed to market its goods and services in compliance with the brand or trademark model.