What is a Franchise Consultant?

Definition of a Franchise Consultant

The franchise industry is booming, and one of its best-kept secrets is franchise consultants. What is a Franchise Consultant? These professionals counsel people who are considering franchise ownership. What is a franchise? By definition, a franchise is an exchange of the rights and licenses of a business for a fee. With this business consultant role, you look at a prospective candidate’s background, financial situation, goals, and more. Many Franchise Consultants are part of a franchise consulting company such as IFPG. As a member of a franchise consulting company, you work with industry members to help prospective candidates identify and invest in franchises.  

With the candidate’s best interests in mind, Franchise Consultants guide candidates through the franchise selection, evaluation, and buying process. Once a candidate decides on a brand, a franchise business consultant may also assist in acquiring the necessary capital to own and operate the business.

Franchise Consulting

A Franchise Consultant is also thought of as a matchmaker who connects hopeful entrepreneurs with franchise opportunities. Once people find out about Franchise Consultant opportunities and why people use Franchise Consultants, they want to hear more.

Most people in the industry know that Franchise Consultants have been vital in the industry’s growth. They also recognize the flexibility and freedom with a consultant role. A career as a Certified Franchise Consultant is like no other. As a franchise business consultant, you have an incredible work-life balance and the opportunity to help others with tremendous income potential.

What Does a Business Consultant Do?

What does a franchise business consultant do? From a candidate’s perspective, the consultant definition is a trusted advisor, counselor, educator, and guide. Franchise Consultants start by assessing the most crucial issue—if franchise ownership is even the right path for the candidate. If it is, then through multiple conversations and other methods such as questionnaires, the role of a business consultant is to narrow down several opportunities to explore. Good Franchise Consultants will work alongside their candidates until they have found the right opportunity and have a signed contract (franchise agreement) with a franchisor. The best Franchise Consultants always keep in touch with the people they placed in business to find out about the experience with the brand. This helps them identify other candidates who might be a good fit.

Franchise consulting is one part counseling and one part artistry. The franchise business consultant must be an active listener to best serve the candidate. The consultant's role involves understanding a candidate’s background, interests, and desired lifestyle and then translate it into an ideal franchise opportunity. Sometimes a Certified Franchise Consultant understands more about what his candidate wants than the candidate even does. Above all, a Franchise Consultant must consider what’s best for the candidate.

Who Becomes a Franchise Consultant?

Franchise Consultants come from all walks of life. Some are retirees who want to keep working, but with a flexible schedule. Some are stay-at-home moms who have left careers to be home with children. Others are young professionals who see the value in the lucrative franchise industry and want financial freedom with their own franchise consulting business. A consultant role is ideal for people who are personable, attentive, and naturally curious about business opportunities. Above all, Franchise Consultants should always take pride in working within the highest ethical standards. 

Franchise Business Consultant Facts

If you want a quick rundown on franchise consulting, consider these compelling Franchise Consultant facts.

• Franchise Consultants are in business for themselves.
• There is a lot of freedom with franchise consulting. With a business consultant role, you decide how much, when, and where they will work.
• The success of a franchise business consultant depends on the effort he or she puts in.
• Franchising is a booming industry. According to the International Franchise Association (IFA), franchising contributed $825.4 billion of economic output into the U.S. economy in 2022 and represented 3% of the total nominal Gross Domestic Product (GDP).
• By joining IFPG, the leading franchise consulting company, Franchise Consultants learn from the industry’s most experienced professionals and have access to hundreds of the leading franchise brands.
• The role of a franchise business consultant is pivotal in the success of both the potential franchisee and the franchisor.
• As part of IFPG’s franchise consultant group, a franchise business consultant becomes part of an extended “franchise family.” They work closely with fellow franchise consultant group members to ensure their candidate finds a business that matches their interests, background, budget and desired lifestyle.
• The main priority for Certified Franchise Consultants is ethical business practices. All Franchise Consultants follow the IFPG Code of Ethics.
• There are several names for Franchise Consultants, including franchise referral consultants, franchise brokers and franchise business consultants.
• Franchise Consultants have been instrumental in the industry’s accelerated growth. The greatest source of franchise leads that become deals are thanks to franchise referral consultants.

Free Franchise Consulting

Working with a Certified Franchise Consultant is a no-brainer for prospective franchisees. Franchise Consultants provide consultation services for free. Instead of charging the candidate, they are paid by the franchisor once the candidate decides to move forward and signs a contract (a.k.a franchise agreement). The role of a business consultant differs depending on who they’re working with at the time.

Franchise Consultants (also known as Franchise Brokers) are Similar to Real Estate Brokers

The role of a Franchise Consultant is similar to a buyer’s real estate agent. Just like there are many benefits to using a realtor, there are also many benefits of a Franchise Broker.

Franchise Consultants act as intermediaries between potential Franchisees and Franchisors. The Franchise Consultant’s job is to determine his candidate’s ideal business and narrow down opportunities that best match the candidate’s interests, experience, and resources. Just as there are multiple homes on the market to choose from, there are hundreds of opportunities— some of which the candidate may have never considered or heard of. In the end, the Franchise Consultant's most important job is to help a candidate decide which business is a good fit by explaining the pros and cons of various options.

What is a Franchise Broker?

From a franchisor’s perspective, a franchise broker is someone who identifies a qualified candidate for franchise ownership. Franchise Brokers are also referred to as Franchise Consultants, franchise referral consultants, and business consultants, and franchise business consultants. Although the names are interchangeable, the consultant definition is the same with all of the terms.

Franchise Broker Description

When you look up the definition of broker, you will find a description of a person who buys and sells goods or assets for others. It’s not the same in the franchise world. Franchise Brokers don’t buy or sell goods. They find suitable candidates to help franchisors grow their brands. They wear several hats. When they are wearing their “business consultant hat,” they counsel aspiring franchise owners and help them find an ideal franchise. When they put on the “broker hat,” they are introducing franchisors to possible franchisees. With either role, these professionals make a huge difference every day by changing lives through franchise ownership. Whatever you call them, (Franchise Consultants or Franchise Brokers), one thing is clear: they make a difference every day.

Franchise Consultants are Paid Commissions to Sell Franchises

Similar to a real estate agent, a Franchise Consultant acts as intermediary between his client (potential Franchisee) and the franchisor. The Franchise Consultant’s job is to determine what his client’s ideal business is and narrow down opportunities that best match the client’s interests, experience and resources. Just as there are multiple homes on the market to choose from, there are hundreds of opportunities— some of which the client may have never considered or heard of. In the end, the Franchise Consultant's most important job is to help his client decide which business is a good fit by explaining the pros and cons of various options.

Who Makes the Ideal Franchise Business Consultant

Franchise Consultants come from all types of backgrounds and industries. Whether you want to start part-time and grow at your own pace, or jump right in with both feet, ask yourself:

Do you...

• Want the freedom of being your own boss?

• Have good communication/soft skills?

• Enjoy helping people?

• Have a business acumen?

• Enjoy networking and meeting new people?

• Like the idea of attending fun industry events?

• Have a desire to be part of the billion-dollar franchise industry?

How to Become a Franchise Consultant

With the flexibility and financial independence that comes with a business consultant role, you may be wondering how to become a Franchise Consultant. To become a Certified Franchise Consultant, a franchise consultant company like IFPG provides you with training. For $25,000, IFPG provides you with access to all of its networking events, a year subscription to Franchise Sales CRM, a mentoring program, and more. Your one-on-one training will detail everything you need to know to pass the certified franchise consultant exam. Your Certified Franchise Consultant designation means that you understand the consultant definition and can immediately start working with qualified candidates to discover and invest in franchises.