The Buying and Investing Process Can Be Difficult and Confusing, But Franchise Consultants Make It Easier
When looking for ideal franchising opportunities, it can be challenging to determine which options are right for you. You may need the help of a franchise consultant to find the ideal franchise opportunity. Similar to real estate brokers, franchise consultants connect you with sellers of franchises, as well as provide you with expert advice based on your investment level, lifestyle, and background.
How do you know if you need a franchise consultant? First-time prospective franchise owners will especially benefit from the franchise consultant’s expertise.
What Does a Franchise Consultant Do?
- Help you avoid making costly mistakes with a franchise.
- Allow you to learn from their experiences, both good and bad. (This can help you determine if franchising is right for you.)
- Provide you with a list of characteristics that the franchisor is looking for. The consultant should be honest about if you meet that criteria or not.
- Provide you with insights into navigating the legal and financial obligations you will have as a franchise owner.
- Help you understand the importance of your relationship with the franchisor and how it will impact your business.
- Typically, potential franchise owners don’t buy the first franchise they find. This fact makes working with a franchise consultant even more critical to avoid the costly, long-term mistake of investing in the wrong franchise.
The Cost of Working with a Franchise Consultant
A franchise consultant’s services are free to prospective franchisees. Franchise consultants are paid by the franchisor once a deal is closed. When you work with a consultant, it will cost you nothing for their advice.
There really is no downside to having an expert help you navigate the uncharted territory of looking for the ideal franchise and help you avoid pitfalls along the way. Again, the advice is free to you. Take advantage of it!
Should You Work With a Franchise Consultant?
Working with a franchise consultant is a great way to do your due diligence before investing in a franchise. 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. Working with a franchise consultant is a great way to start that dream.
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.
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. A successful franchise system ensures the franchisor can potentially have one of the most profitable franchises in their industry.
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.
Unfortunately, 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.