Franchise consultants provide useful services for franchisors and franchisees. Sometimes referred to as “franchise brokers,” they have insight that can ultimately help both parties and expand the presence of the brand.
For a prospective franchisee seeking to acquire a franchise, the choices can be overwhelming. A franchise consultant can assist the prospect in narrowing down the options and finding the right fit. Franchise consultants may work with many or only a few different franchisors. Some consultants represent more recognizable brand names, while others may have a clientele of smaller and newer franchise systems.
We will explore the scope of this dynamic here, as well as the characteristics the consultant should possess to help the franchisee.
The Sales and Interview Process
We previously discussed how an effective franchise consultant can help franchisors. The consultant is traditionally hired by the franchisor to help develop the franchise system and expand into new territories. One of their key objectives is to find “the right fit” for a potential franchisee and ultimately present qualified candidates to their client, the franchisor. While the consultant is often paid by the franchisor if and when the franchisee purchases the franchise, good consultants will also want to ensure that the prospective franchisee finds a franchise that will be right for her or him and where she or he has the greatest chance of success.
During the process, good consultants will inform the franchisee about the benefits of joining a franchise system, what it means to be a franchisee and how franchised business ownership can be a realistic career option.
A critical step in the process includes asking about your financial state. The franchisee will have to make a substantial financial commitment, and the consultant will know the franchisors’ requirements. These discussions will help the consultant determine the best franchises for the prospect.
It is very easy to get excited and lose sight of all the intricacies of purchasing a franchise, and the consultant can help maintain the momentum.
Recognizing the Qualities of an Experienced Consultant
Just as the franchise consultant will vet candidates, franchisees should also research the consultants, who should have:
- A professional history or deep experience in franchising
- An easily-accessible digital profile on their own site, LinkedIn, or professional networking site
- A portfolio of past clients or locations, featuring testimonials.
Speak with the consultant’s past clients to gain honest insight. If they say the consultant educated and coached them along the way, that is a sign they can be your ally throughout the sales process.
Further, since there is no license for becoming a franchise consultant, you need to ensure they are actively engaged. They should be visible in professional associations and demonstrate their presence and knowledge by having lead educational sessions at industry events, authoring articles with reputable publications, and possess other related certifications that demonstrate their education (such as banking, finance, business or law).
Ultimately, successful franchise consulting assists the franchisee to chart a path for business growth. A truly committed consultant will be focused on a strategic or long-term pairing, because they must constantly build their own track record and reputation.
We Can Help
Once you have found the right fit, avoid the temptation to sign on the dotted line. You should first review the agreements with franchise counsel.
Lusthaus Law P.C. has a proven record of assisting franchisors and franchisees with their business operations at every stage of development. We are committed to our clients’ success and keep our finger on the pulse of the industry to ensure that we provide the best and most up-to-date franchise law counsel.
Contact us today to learn more about how Lusthaus Law P.C. can help you navigate a clear path towards your successful future.