Difference Between Franchise Consultant and a Franchise Broker

What is the difference between a franchise consultant and a franchise broker? The simple answer is… “it depends on who you ask.”

Anyone who helps other individuals through the process of buying a franchise is considered a franchise consultant or a franchise broker. Below, we define the terms “consultant” and “broker” to clarify the differences.

Consultant

According to Wikipedia, a consultant (from Latin: consultare "to deliberate") is a professional who provides expert advice in a particular area. A consultant is usually an expert or an experienced professional in a specific field and has a wide knowledge of the subject matter.

Franchise Consultant Definition

The definition of a franchise consultant is multi-faceted. Their role is pivotal in every phase of the franchise discovery process. Franchise consultants’ services are in demand more and more as the industry grows. Acting as trusted advisors, franchise consultants help people who are considering a franchise purchase. First and foremost, franchise consultants help interested parties determine if a franchise investment is the right move. From there, franchise consultants guide candidates through the process of determining which ownership model, business sector, and brands would be suitable for the candidate’s lifestyle, investment level, and experience. Once specific opportunities and brands have been identified, the franchise consultant works hand-in-hand with the candidate and the franchisor to ensure a good fit is made for all parties.

Franchise consultants work independently but gain more industry recognition, education, and credibility when they are affiliated with a franchise brokerage such as IFPG. All IFPG’s Franchise Consultant members have gone through extensive training to ensure that they are educated on franchising’s best practices, and have in-depth industry knowledge. IFPG Franchise Consultants follow the IFPG Code of Ethics which upholds IFPG’s reputation for virtuous business practices and ensures that a candidates’ best interests always come first.

What is a franchise field consultant?

Even though their names are similar, a franchise field consultant’s job is completely different from a franchise consultant’s job. Franchise field consultants are employed by franchisors and work directly with franchisees. They work within a specified area and help franchise owners run their business most effectively by providing strategies and guidance set by the franchisor. Franchise field consultants also ensure that franchisees follow and implement the franchisor’s system as specified in the franchise agreement. Franchise field consultant jobs have been growing along with the continued growth of the franchise industry.

Broker

According to Wikipedia, a broker is an individual who arranges transactions between a buyer and a seller for a commission once a deal is executed.

Relationship with the Candidate

The relationship between a franchise consultant and a candidate is best described as “counseling.” Keeping a candidate’s best interests in mind, all IFPG Consultants follow the IFPG Code of Ethics. Consultants provide guidance and expert advice to help people identify franchises that are suitable matches for their interests, budget, skill set and lifestyle. IFPG Franchise Consultants are not restricted by area and can work fully remotely. In fact, 99% of IFPG Consultants never meet with their candidates face-to-face. Consultations are done by phone or video conferencing and can take place anywhere.

Franchise Consultant on Phone

IFPG Franchise Consultants can work from home or from anywhere they choose.

franchise consultant collaborating

Franchise consultants are in demand in the franchise industry. IFPG offers multiple ways for franchisors and consultants to connect and develop lasting business relationships which ultimately leads to successful franchise ownership for franchise candidates.

Broker Relationship with the Franchisor

Businesses use the franchise model to scale their brands by partnering with quality investors (aka franchisees). Franchisors rely on franchise consultants to introduce suitable candidates for franchise ownership. Franchisors like to work with consultants who understand their brand and the type of people who will best represent it as franchise owners. The relationship between the franchise consultant and the franchisor is best described as “brokering.” In the eyes of the franchisor, the franchise consultant arranges a transaction for his brand with an investor (franchisee) for a commission.

In the franchise industry, the words “broker” and “consultant” are often used interchangeably.To the outside world and to your candidates, you are viewed as a franchise consultant. You offer advice to your client and help guide him to the opportunity that is a perfect fit. You are the expert.

 

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Red Boswell

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Red Boswell, President