7 Reasons to Hire a Franchise Consultant

By Don Daszkowski

Buying a franchise involves tremendous research. With so many different types of opportunities to choose from—part-time, home-based, large-scale retail operations—finding the ideal business might seem impossible. This is where the franchise consultant comes in.

A franchise consultant guides prospective franchise owners through the franchise investment process, considering their background, interests, and finances. Similar to real estate agents, franchise consultants offer their advice at no charge to prospective franchisees. They are compensated with a commission from franchisors once a deal is closed.

But what else does a franchise consultant do, and why should you hire one?

How franchise consultants help prospective franchisees

1. A consultant can help you determine if franchising is a right fit for you

Before making the life-altering leap into franchise ownership, you should know if you are cut out for it. A franchise consultant will ask you some tough questions to find out if you are a good fit.

For example: Can you follow a proven system? Do you want to manage employees and deal with staffing issues? Are you fine with paying a percentage of your monthly sales to the franchisor? Finding out the answers to these questions can help you avoid a lifetime of regret.

2. A consultant can help you identify brands with proven track records

The mark of a good franchise consultant is strong networking skills. To find reputable brands, they have to attend networking events to meet with franchisors and learn about their concepts. This will help them provide prospective franchise owners with the information they need to find the ideal franchise.

3. A consultant will introduce you to current franchisees

An essential part of the due diligence process for prospective franchise owners is to talk with other franchisees and ask questions. A franchise consultant will take you through every step of the process, help you ask the right questions, and evaluate the feedback.

4. A consultant can tell you what to expect as a franchise owner

Investing in a franchise is serious business and every brand is different. As a franchise owner, you will have to understand the business's day-to-day functions. How will you spend your time? Are you comfortable selling and networking? The franchise consultant will help you see yourself in the role of business owner and explain franchise basics and what to expect in the daily grind of franchise ownership.

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5. A consultant can walk you through the pros and cons of different brands

After you have narrowed down your list of brands, a franchise consultant should help you research the positives and negatives of the various opportunities. For example, if you are looking to invest in a fast-food franchise, do you want to invest in one with decades of franchising experience and hundreds of locations, or are you more interested in a newer concept that just started franchising? This should all be considered before making your investment.

6. A consultant can help you figure out costs

A franchise consultant also helps candidates understand the costs associated with franchising, which are outlined in the Franchise Disclosure Document (FDD). Along with a franchise attorney, the franchise consultant will review this document with you and help identify any red flags or unclear fees and expenses.

For example, is a local advertising fee included in the investment, or do you have to pay extra for it? Do you have to pay for travel expenses during training? These are all questions a franchise consultant can address.

7. A consultant can help you stay motivated during the buying process

Great franchise consultants are passionate about finding hopeful business owners the ideal franchise. They understand that people are busy and will keep you updated with messages and alerts. This will ensure that you don’t miss any critical steps during the process.

Bottom line: the franchise is your business

Working with a franchise consultant can be very beneficial, but, ultimately, it is up to you to decide on a brand. You will be responsible for the investment, running the business's daily operations, and living with the consequences (good or bad).

It is up to you to gauge your risk level and the amount of work that's necessary to be successful.

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