The premier issue of The Franchise Tribune came out in March. The publisher, Marc Stephens, wrote an article titled “Getting the Most Out of a Franchise Consultant.” I would like to reprint it.
The number of franchise consultants has grown tremendously in the last decade. An industry that used to have less than 100 active consultants in the early 2000s now exceeds 2,000 in the
Often referred to as brokers, consultants, coaches, and advisors, their business model is pretty much the same. They work with prospective franchise investors to identify and explore potential opportunities, and if their client invests in one of their suggested franchises the franchisor pays them a finder’s fee. It’s basically what a recruiter does in the employment industry, but focused on franchising. Since the franchisor actually pays the consultant, generally their services are free to you, the opportunity seeker.
Some consultants represent a few franchise brands while others represent hundreds of brands. A good franchise consultant can not only help you explore and research potential opportunities – they can also assist with other steps in the process such as:
· Determining what is not available in your market or territory.
· Help you identify your strengths, weaknesses, goals, and more to better align you with business models and industries.
· Help explain some of the rules and procedures in franchising.
· Introduce you to ideas you may have never known existed.
· Handle some of the tedious legwork that tends to come with franchise research.
· Get you preferential treatment from the franchisors.
· Introduce you to a range of funding options that are commonly used in franchising.
So the question begs...Should you work with a franchise consultant or broker? The answer is simple: Yes, after all what do you have to lose? The services are no cost to you, and you are under no obligation to invest at all. A common question is, do you pay for more for your franchise since they are paying the broker? No. Franchise fees are pretty much set in stone, regardless of how you find them.
When working with your consultant, be open and frank with them. The more you can share with them the better they can assist you. A good consultant is not going to share your information with a franchisor or lending partner without your explicit permission, so don’t be shy. Two very common elements of successful franchise consultants are that they simply love franchising and enjoy helping others achieve their goals.
Let your consultant go to work for you; I think you will find it to be a worthwhile investment of your time. – Marc Stephens
I know most clients I have worked with say they found and invested in opportunities they never would have discovered on their own. Learn more at BusinessFits.com and read my book, Business Fits: How to find the right business for you!
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