Why use a Franchise Consultant
For Buyers: There are over 5,000 registered franchises available on the internet. It can be a daunting and frustrating experience to find the right one for you. If you rely on search engines to produce the results, you will only find the companies that have paid to be listed at the top in the search rankings. High visibility on the Internet does not correspond to the relative value of a business opportunity.
By utilizing their industry experience, a Franchise Consultant can sort through the options and find what works best for your personal and business goals. They can help you understand the difference between the various types of opportunities so you can determine which format is right for you. A key advantage is that a Franchise Consultant has the inside track on both the up and coming as well as the established franchise concepts that will meet your requirements.
A Franchise Consultant can
- Take the time to understand your background, skills, interest and objectives.
- Understand your financial limits and risk tolerance.
- Ensure you don’t waste your time on opportunities beyond your financial reach or not available in your location.
- Help you avoid making a big mistake by focusing on businesses that have met certain quality standards.
- Provide you insight into opportunities in your local area and even possible savings you might not realize on your own.
- Present your qualifications to franchise management raising your visibility and credibility.
- Will initiate an education process designed by the franchise to help answer all your questions about that particular business.
- Guide you on the proper ways to conduct due diligence on a franchise opportunity.
- Help guide your investigation by providing you insight into the terminology, processes, red flags, and investment levels to consider.
- Connect you to legitimate financial resources to assist with your funding options.
- Introduce you to experienced franchise attorneys so you understand your legal obligations.
- Provide their services at no charge to the buyers. (ABC certainly never charges buyers to assist them in their search for the right business.) Buyers pay the same amount whether they use the services of a Franchise Consultant or not.
For Franchisors: One of the biggest challenges for franchise companies is finding entrepreneurs who will be a good fit for their particular business model from the thousands of requests. A Franchise Consultant working on behalf of the Franchisor can help filter the people who are not qualified or not motivated to become a part of their organization. They understand what type of candidates franchises are looking for and strive to provide the best ones.
By introducing a pre-screened buyer who meets their basic requirements, is informed about the opportunity, and is more than just casually interested saves the franchiser a great deal of time and money. Therefore, Franchisors pay a referral fee to the consultant once a buyer has been awarded a franchise and pays a franchise fee.
The Process: The process of using a Franchise Consultant starts with an initial phone call discussion to discuss your objectives.
The Consultant will
- Ask about your home address so a proper search for businesses in your area can be conducted.
- Ask about your work experience, and interests to apply to your new business.
- Inquire as to whether your spouse, family, or partner will be participating.
- Want to know your timeline for becoming an owner of a new business.
- Verify your location choices.
- Gain insight into your desired business model (retail, office, mobile service, or home based).
- Explore your budget, net worth, and financing options.
- Request you fill out a franchise pre-qualification questionnaire which will help to determine your qualification for franchise ownership with various franchises.
The more information you provide your consultant, the better they can find a business that matches your goals. Purchasing a new franchise business will be an important family decision and one of the largest investments you can make with your savings. Discovering the best options for you and getting accurate information is essential. Using an experienced Franchise Consultant that has been trained in the various franchises business models will expedite your path to ownership and give you the confidence you have made the right decision.