Buying a Franchise: the Value of a Franchise Consultant

Since I am a franchise consultant/broker, some may dismiss this article as biased.  However, the main point that I am trying to address on this page is to analyze the actual dynamic of searching for a franchise and the realistic value franchise consultants bring to the process. 

When searching for a franchise, entrepreneurs often come across various franchise consultants and wander: “Why should I use their services?”  The answer is simple: “To save time and money.”  Franchise consultants may not provide a total solution, but their services usually come at no cost and they regularly spend hours interacting with people who buy and sell franchises, making them a good source of information

It is rare to for anyone to actually know a franchise consultant before seriously starting their search.   Plus, there are just not that many franchise consultant around.  It is a niche profession that was born from the franchisors’ constant thirst for more qualified candidates.   The first time people start hearing about the franchise consultants is when they actually start searching for a franchise.

Just like in any service profession, there are all kinds of franchise consultants out there.  Some spend hours a day studying franchises and doing research on behalf of their clients, constantly looking to learn and improve their resources.  Others spend little time learning and more time steering people towards the companies that they know will pay the highest commission.  Some work with ten companies, some represent hundreds.  It is not, and never should be, a secret that the majority of franchise consultants work on commissions paid by the franchise companies.  Consultants, or brokers, provide their information at no cost with a plan to pass along a qualified candidate to the Franchisor.  That does not make them any less useful.  Many consultants compare their business to that of corporate recruiters who spend their time talking to hundreds of people in search of the right candidate.

My advice to someone looking for a franchise is to explore every option available.  This includes utilizing the services of a franchise consultant.  In the same manner I would advise anyone to use the services of a good lawyer and accountant during their search.  Not using a consultant will not save the franchise shopper any money that is for sure.  Legally, a candidate can’t cut a consultant out of a deal with a franchise they were referred to, similar to the way some people undercut (bypass) real estate agents.

I suggest thinking of a franchise consultants as a tool in a Swiss knife.  They may not work for every job, but are definitely well suited for a quite a few.  They may not be able to find the “right” business.  Candidates may not like what they have to say or the companies they refer them to.  However, it is very likely that they know a good deal about franchising and can provide a volume of useful information.  At the very least, a franchise consultant will educate potential franchisee on the process and will help sort our businesses they do not want.  That is a great start within itself. 

If a candidate is serious about buying a franchise and approaches the process thoroughly, the information they obtain will definitely help them become a better buyer.  As long as candidates remain pragmatic through the process, the information franchise consultants can provide will help them save time and money. In the end, the choice belongs to the candidate.   Franchise buyers are responsible for the due diligence, analysis and, of course, their money.  However, understanding what franchise consultants do and utilizing them as a tool in a franchise search process can be very valuable, indeed.

For more on finding the right franchise go to: http://franchise-opportunities-search.com