Should You Work with a Franchise Consultant?
Working with a Franchise Consultant is a great way to do your due diligence before becoming a franchise owner. With a smooth transition into franchise ownership, you can be your own boss, have financial independence and achieve the work-life balance you have always wanted. After the Franchise Consultant helps you narrow down your list of brands, they will help you weigh each brand's pros and cons. For example, if you are looking to invest in a fitness franchise, do you want to invest in a niche studio or a large-scale, traditional gym? If it is a niche studio, should it be a yoga, rowing or boxing studio? These are all important considerations when looking into the best franchises to own.
A Franchise Consultant also helps candidates identify the hidden fees and costs associated with franchising. These are outlined in the Franchise Disclosure Document (FDD). Along with a franchise attorney, the consultant reviews this document with you and helps identify any red flags.
Your Franchise Consultant should be passionate about finding the ideal franchise for you. They understand that this is a difficult process and that you are busy; thus, they will keep you updated with messages and alerts to ensure that you don’t miss any steps during the investment process.
Working with a Franchise Consultant is very beneficial because they guide candidates throughout the franchise discovery and investment process. While having one as a guide is excellent, the final choice is ultimately up to you. You are responsible for buying it, running its daily operations, and living with the consequences. You have to gauge your risk level and consider the amount of work needed to make the franchise business succeed.
What Happens After the Sale?
Owning a business isn’t easy. But the job of the consultant is to make sure that purchasing a franchise is the right path for you. After you invest in the franchise business and get it up and running, the Franchise Consultant's job is done, right? Nope! Typically, the Franchise Consultant continues to work for the franchisor to get entrepreneurs who want to open a franchise to invest. But the consultant you work with will not be the person that supports you for the duration of your franchise agreement. The franchisor will be the one who supports you; however, consultants work closely with franchisors in order to find quality and qualified prospects.
Sometimes the franchisor and franchisee relationship doesn’t work out and you happen to invest in the wrong brand. What if the franchise business for you isn’t in the consultant’s portfolio? It isn’t possible for the Franchise Consultant to have in-depth knowledge of all of the franchise businesses out there. An entrepreneur who opens a franchise must do their own research and be their own best advocate before working with a consultant and investing in a franchise business. Not only do consultants know how to buy into a franchise system, but they make purchasing a franchise as straightforward as possible.
Do You Need a Franchise Consultant?
Franchise Consultants help facilitate the sale of franchises between franchisors and prospective candidates. To help determine if being a franchise owner is for you, these professionals provide you with a list of characteristics that the franchisor is looking for as well as insights into navigating the legal and financial obligations of franchise ownership. There is no downside to working with them because their advice is free. As the number of franchise establishments rises, the services of these professionals will likely increase with it.
What is the Difference Between a Franchise Consultant and a Franchise Broker?
The terms franchise broker and Franchise Consultant are used interchangeably. These professionals wear different hats depending on who they are working with. When working with prospects looking for absentee owner franchises or the best franchises to own, they are consultants. They put on the broker hat when working with franchisors to sell franchises.