Franchise Consultants have a great many roles in franchising today. In earlier years, franchise consultants were an integral part of franchise sales support teams. These team members worked together to provide valuable information and guidance to new and already successful franchisees. Today however, franchise consultants have evolved into an entirely separate profession and are no longer required to provide franchising guidance to their clients. Franchise consultants are independent professionals who focus on helping franchisees achieve maximum performance and profitability.
In the past, the term ‘franchise’ referred only to the sale of an exclusive company franchise to an individual or group of individuals. The term ‘consultant’ on the other hand, referred to the individual or group that was considering purchasing a franchise, which in this case would be a business opportunity offered by another company. Franchise consultants in modern business terms are very much part of the marketing mix of both existing and potential franchises. They are an invaluable resource for business owners seeking assistance with creating franchise agreements and finding suitable staffing for those agreements.
Most of us have participated in one or more franchise consultations in our lifetimes. We attended because we felt like we had been missing out on something or had a special need for assistance in dealing with some aspect of a business opportunity. We might have been interested in a particular topic or had a special talent in a particular area. Sometimes, franchise consultants are involved in franchise sales exclusively and other times they are an integral part of the sales and support team of a franchiser. Regardless of the way in which franchise consultants are perceived, their work is still very critical to the success of all franchise opportunities.
What To Look For In A Franchise Consultant Company
A good franchise consultant is not only focused on assisting franchisees develop and implement good franchise agreements, he/she should also be available to guide them in making good business decisions. Good franchise consultants will listen to the concerns of potential franchisees and help them develop a plan of action that focuses on their individual goals and objectives. It is important for potential franchisees to understand, the franchise consultant’s role is to assist them and not to act as a gate-keeper or dictate the course of action. Good franchise consultants will be able to explain the strengths and weaknesses of a particular product line and assist them in deciding which offerings would be most beneficial to them and their franchise.
Many franchise consultants work directly with franchisors, while many others work through independent brokers. There are franchise brokers who have developed a name for themselves by assisting and guiding thousands of franchisees throughout the buying process. Other franchise brokers work through independent agencies and only promote the best independent franchises to buyers. One must take into consideration which type of broker is best for a particular franchise buyer.
Some franchise consultants work solely through the FDD (Franchises Disclosure Database) and others work through independent third-party vendors who create Franchise Disclosure Documents. Both of these types of consultants can provide valuable advice to those franchisees interested in purchasing multiple brands or types of franchises. In addition, many independent vendors create Franchise Disclosure Documents, which provides detailed information on the financial performance and operating profit of each specific brand or model of franchise. Franchise consultants can also provide an expert evaluation of franchise financial statements and franchise operations to assist in making well informed franchise decisions. However, one should exercise caution when selecting any independent Franchise Consultant, you need to do your due diligence before making any agreements with this professional.
The Benefit Of A Franchise And Hiring A Franchise Consultant
One way to determine the quality of a franchise consultant is to ask to see their prior work history. Most of the best franchise consultants will have a portfolio of their prior work and/or clients and if they refuse to show you their portfolio or client list you should question how much experience they have in the field. A competent franchise consultant should have a large portfolio of completed franchises to their credit and should be willing to discuss their portfolio with you. If they are unwilling or unable to answer your questions in a candid manner then you should question how much they really know about franchise consulting. A good franchise consultant should also be willing to provide you with written franchise reports and/or case studies if asked.
A Franchise Consultant Company can be a tremendous benefit to the franchise development industry. Many companies use the services of these consultants to help them develop and market new business models and/or new brands. However, you should be very careful where you obtain your franchise consultants. There are many undesirable franchise consultants out there that will do almost anything to make a quick dollar at your expense. You will want to be careful in your choice and make sure you choose the right consultant for the job.