Every aspiring entrepreneur goes through the tedious process of selecting the most suitable franchise out of the large array of franchising options. Hiring a franchise consultant can make this task easier. Explore ahead for further details
As entrepreneurs aiming to make a mark on the franchising arena, you must have heard the term ‘franchise consultants’ and may have linked them as guides to the successful franchisors. It is time you get a wider perspective of the functions of franchise consultants for the franchisees as well.
Taking up a franchise requires enormous commitment, and entering into it without examining its various aspects in advance is quite risky. Only a franchise consultant can be the best means for providing the most recent information regarding the franchises of your interest. Moreover, the franchise consultants in most cases are employed by the franchisors. Therefore, their services for franchisees are for free. Prospective franchisees, can also take their help to reap profitable results. Below given are a few other ways in which franchise consultants can be helpful to the franchisees:
Selecting suitable franchises: The consultant may have pre-screened hundreds of top franchises and would provide a list of selected few who can meet the highest standards according to the needs and interests of the franchisee. The consultant can arrange for the perfect opportunity based on the specific interests, talents, background, and goals.
Introduction with the franchisor: After short listing the most suitable franchises, the franchise consultant next task is to fix up a meeting with the prospective franchisor. Moreover, an introduction with the franchisor helps the franchisees know better about the potential of the franchisors.
Clearing doubts: As the franchise consultant has prior relationship with franchisors, thus clearing doubts regarding any issues is quite helpful. A franchise consultant can aid assistance to the franchisee before settling down with the franchise proposition.
Information regarding franchises: Taking guidance of a franchise consultant may help the franchisee in getting a clear picture of the fees, and royalties of the various shortlisted franchisors. Most franchise seekers may not be aware of the cost involved in purchasing a specific franchise, but the consultant offers vast insight into the various types of franchises and their investment requirements.
Suggesting finance options: Franchise consultants due to his knowledge and prior experience in the field can also suggest financing options suitable for you. It is seldom that a franchisee comes out with the capital required for buying a franchise. In most cases franchisees have to consider bank loans and other viable options. At such times, the consultant can advise in getting easy loans.
Understanding the franchise agreement: As novices in business, you may not be aware of the clauses in the franchise agreement. The franchise consultant can make it simpler when you are finalising a deal with the franchisor. He can safeguard the franchisee from any mishaps in future as well.
Information regarding other franchisees: A franchise consultant may be having the information regarding the number of franchises a particular company already operates in the franchisee’s planned location. He may also have an idea about the number of competing franchises in/near the area. Therefore, the franchisee can gauge their success and failure rate by the help of this information.
Selecting a franchise consultant
After being aware of all the benefits of a franchise consultant, how do you look for the most suitable one? You can find a franchise consultant through Internet or even ask your friends who had taken up franchising. The next step is to carry out an intensive research of the selected few. Aspiring franchisees can also find out about the earlier clients and call them up to know their previous dealings with the consultant. A franchise consultant who has been successful and honest in his dealings should be preferred to one who has no prior experience in the field.
To conclude, choosing the right franchise consultant is the first step towards success. However, before finalising, be sure to judge the credentials of the franchise consultant.