A franchise consultant can help navigate the franchise discovery process and potentially save you from making a huge mistake.
Looking for a franchise business can be overwhelming. Investors need guidance and information to feel confident about charging into an entirely new field as a franchise owner. There are so many things to consider, beginning with understanding if investing in a franchise is even the right path.
So where do you start? Finding someone to guide you through the head-spinning process can make all the difference. An experienced franchise consultant can give you the direction and facts you need to make an educated decision. Below, we look at the many ways these trusted professionals can help you through the franchise discovery process.
What is a franchise consultant and what do they do?
An experienced franchise consultant is an extremely valuable resource. A consultant provides information and expert advice for finding the right franchise. Most importantly, a franchise consultant can prevent you from making a costly mistake with a business that’s not a good fit. Guidance from a franchise consultant who has real-world industry experience can make all the difference. Even better is a consultant who knows the realities of franchise ownership firsthand. Why is this important?
- You will be able to learn from the consultant’s experiences, both good and challenging.
- An experienced franchise consultant can help you avoid making costly mistakes.
- A consultant can help you understand the important relationship between franchisee and franchisor and its impact on the business.
- A good franchise consultant will offer a list of critical characteristics to look for in a successful franchise.
- A savvy consultant can provide insights on how to navigate the legal and financial obligations of franchise ownership.
- Knowledgeable consultants can share practical stories regarding employee and customer relationships and how they affect the bottom line.
- Franchise consultants who have been in the trenches as franchise owners can share how that experience impacted their lives.
What process will a franchise consultant use to help me?
A good franchise consultant is more than a cheerleader. A savvy consultant can provide you with a playbook or detailed plan to follow. It should include five critical steps:
- Education: A good franchise consultant will educate you about the franchise industry’s nuances, including regulations, costs, relationships, and opportunities.
- Assessments: Your consultant should spend time learning about your background, skill sets, personal and business interests, and financial capabilities. You should receive personality and financial assessments to help determine if you are qualified for business ownership.
- Direction: You should be introduced to proven franchise opportunities that would be a good match based on the consultant’s assessments (see step #2).
- Due diligence: With each franchise opportunity you decide to pursue, your franchise consultant should guide you through a due diligence process. This three- to four-week undertaking gives you a chance to get to know a franchise company’s executives and ask important questions.
- Guidance: You should be given the opportunity to speak directly with franchise owners and ultimately meet face-to-face with the franchise’s leadership team. At the end of the process, your franchise consultant will help you confirm that your choice is the right decision for you.
What will it cost to work with a franchise consultant?
Even though they provide a valuable service to franchise seekers, franchise consultants do not charge for their assistance. Instead, they are paid by the franchisor once a deal is closed. Most franchise consultants represent multiple franchise companies. Those franchisors are all on the prowl for good, quality franchisees. But they are so busy running a corporation, they don’t have the time to search for the right owners. That’s where the franchise consultant comes in. The franchise company pays the consultant to help find the right talent. So the consultant gets paid when the candidate succeeds. That’s why successful consultants work very hard to make sure candidates get the answers and direction they need at no cost.
It is always wise to have good assistance when traveling through uncharted territory. Having an experienced guide at your side keeps you from falling into unknown pitfalls along the way. An experienced franchise consultant can help you find your fit with a smooth transition into franchise ownership. With the right franchise investment, you can live an empowered life, enjoy freedom and flexibility, and leave a legacy you can be proud of.