How to Get the Most Out of Franchise Consultants
If you have made the decision to invest in a franchise, then chances are you have heard about a "franchise consultant" or a "franchise specialist." These individuals are trained in helping you find the right opportunity to match your needs and interests. They can prove to be an invaluable resource to those looking for franchise opportunities. However, there are a few things you should know before using one.
Who Pays the Franchise Consultant?
Many times the franchise specialist is paid by the franchisor. In other words, they receive a percentage of the franchise fee from the company offering the opportunity to a buyer. So, many times a buyer will hear that the specialist’s service is free, which is mostly true for the prospect. If that is the case, check with the franchise to see what their fee truly is. If it is different than what you are told by the consultant, then chances are they are charging the buyer for their services.
A Consultant Is There to Educate -- Not Decide
These franchise specialists are familiar with a set amount of franchise opportunities. There is no way for them to be intimately familiar with every franchise opportunity available. Furthermore, it can be a good sign to work with a franchise consultant that works with a smaller list of opportunities. Hopefully, they will have done a better job fully qualifying opportunities and getting to know them better versus the consultant that has a myriad of opportunities. Chances are the former consultant knows much more about his few opportunities whereas the latter will know very little about so many different franchises.
With that said, their job is to help you narrow down your choices to a list of opportunities that would interest you. It is not their place to make a decision for you.
Establish a Comfort Level with Your Consultant
It is important that you are assured your consultant has done their homework getting to know you. They need to spend quality time learning about you and what you wish to accomplish in your new business. In fact, they should spend a good deal of time with you before they even begin to start telling you about the opportunities they know about.
Typically, a consultant will spend time interviewing you. Then they will go research the franchises that may be a good fit for you before making a second meeting to discuss what they have found. It’s a good idea to try to understand their recommendations. You want to make sure they are recommending something based on what they have learned about you rather than feeling like they chose the ones they did because their commission is highest on those.
Criteria for Picking a Consultant
Like any other business decision, there are a few things you can look for when choosing a consultant. Ask how long they have been in business. You want to deal with a company or group that is established and has a track record of dealing with this industry. Also, find out how many different companies they represent, and in how many different industries. You do not want to deal with someone who only represents food franchises if you are interested a multitude of industries, for example.
Buying a franchise can be an exciting time that is full of questions and decisions to be made. These specialists and consultants can be a great resource to help make the buying process more simplified. They have the contacts and experience to get you matched with the right opportunity to make owning a franchise an opportunity you will enjoy rather than regret.
