Franchise Consultants
At first glance, franchising seems to be a more straightforward option to enter the business world than starting a business from scratch or buying an existing business. The brand is already established, you have a framework to work with and you may also have access to a support network to help you get set up.
Unfortunately, it’s often not as straightforward as that. Some of the common barriers and challenges aspiring franchise owners run into include:
- High startup costs
- Lengthy approval process
- Less control over the brand
- Stricter regulations
- Not as much influence in key decision making
- Complicated exit strategy
This is where the expert advice and services of a franchise consultant can be extremely valuable.
What is a franchise consultant?
A franchise consultant is someone who has expertise in franchising. They provide tailored advice and consultancy services to both franchisors and franchisees to help you successfully navigate the sometimes complex world of franchising.
What does a franchise consultant do?
For franchisees, franchise consultants guide you through the whole process of buying, starting and growing a franchise including startup costs and marketing to business growth and business development. For franchisors, franchise consultants can help you expand and grow your business, make well-informed decisions and succeed in the franchise industry.
Franchise consultants understand the process, intricacies and challenges people experience in the franchising world and have built up a solid acumen of knowledge and experience to help you make the right decisions.
What is the difference between a franchise consultant and a franchise broker?
A franchise consultant is different from a franchise broker. The main role of a franchise broker is similar to a real estate agent in the sense that they assist you with the purchase or sale of a franchise only. A franchise consultant, on the other hand, offers more holistic services to help you with wider issues and business development and growth strategies.
What services does a franchise consultant offer?
Franchising is a big investment and involves a fair level of risk. Allocating some funds to get tailored advice and guidance based on your unique circumstances is a worthwhile investment that will provide a good return later down the line. Some of the most common services franchise consultants offer include:
- Assist in finding franchise opportunities or prospective franchisees
- Assess if a franchise is a good idea
- Review your business plans
- Review your franchise expansion plan
- Advise you on franchise laws and regulations in your country or jurisdiction
- Help you uncover potential issues with your franchise business plan
- Help you set up your franchise plan
What are the benefits of hiring a franchise consultant?
Franchise consultants are experts in the yield and offer the following benefits:
- Gain an outsider’s perspective: Franchise brokers aren’t emotionally and invested in your ventures and can give you expert and unbiased advice and recommendations that you may not gain otherwise.
- Specialised knowledge: Franchising is unique and comes with its own set of challenges and hurdles. Franchise consultants know how the industry works and are well clued up on the various legal and operational issues and practices involved.
- Develop a solid strategy and plan for success: Franchise consultants have a solid understanding of the types of opportunities that are profitable and those that pose more of a risk. They can help you devise a strategy, infrastructure and processes that support it.
- Find suitable opportunities: Whether you are seeking a franchise opportunity or suitable franchisees, consultants can help you with the research, screening and selection process to find business opportunities that align with your long term goals.
What should you look for in a good franchise consultant?
Choosing the right franchise consultant is crucial - not all franchise consultants have the same level of experience or offer the same services. Here are some important considerations to help you choose the right consultant:
- Experience: How experienced are they, particularly in the type of franchise you’re looking to buy or sell? Ask to see evidence of their work and walk you through it if needs be.
- Reputation: Have they earned themselves a good reputation and have reviews and client testimonials to back it up?
- Transparency: Are they open and honest about how they structure their fees? Only engage with a franchise consultant that communicates clearly - you don’t want any unwanted surprises later down the line.
How much do franchise consultants charge?
There are two pricing structures for franchise consultants:
- Consultants that charge on a commission basis: These types of consultants usually work on behalf of a client or franchisor that has hired them to find prospective investors/franchisees or franchise opportunities.
- Consultants that charge a flat fee: These types of consultants aren’t usually working on behalf of a client/franchisor and charge a flat fee instead of a percentage of an upfront franchise fee. Hourly rates for franchise consultants typically range from $70 to $350.
As mentioned earlier, always ensure the consultant is upfront and transparent about their fees.
If you think you could benefit from the expert advice of a franchise consultant, we can introduce you to a number of experienced franchise consultants here on SavvySME. Simply answer a few questions and we’ll introduce you to the right professionals that can help.
You can also join in the community discussions with other franchisors and franchisees, post a question in our Q&As and check out franchising articles.
