Taking a leap of faith into franchise ownership is an exciting, life-changing step. The industry is booming with a mind-blowing array of opportunities that run the gamut from small, home-based models to large-scale operations. With new franchise opportunities being introduced practically on a daily basis, how do you find the right one?
Enter the franchise consultant. These professionals guide interested parties through the franchise discovery and investment process. As the founder of an organization that trains franchise consultants, I’ve seen them serve as coaches, counsellors, advisors and educators. Similar to realtors, franchise consultants don’t charge for their services to potential investors. Instead, they are paid by the franchisor when a deal is closed.
If you’re not sure if you should call on one of these professionals, below are 10 reasons to consider.
How Franchise Consultants Can Help You
- Decide if franchising is right for you: First things first. Are you really cut out for franchise ownership? Can you follow a proven system? Investing in a franchise is a huge life change, so you want to get it right. You might like the idea of a food franchise, but do you really want to manage 20 employees and go through an expensive buildout? A franchise consultant will ask the tough questions and point out the good, the bad and the ugly to
- Know what to expect: Investing in a franchise can be a long road. You have to understand the day-to-day functions. How will you be spending your days as a franchisee? Will you have to pound the pavement looking for business, or will it come to you? Are you a people person who isn’t afraid of selling, or are you more comfortable with hands-on work? A franchise consultant will tell you what the daily grind looks like and help you see yourself in that role.
- Identify reputable brands: Good franchise consultants spend a lot of time at industry events networking with franchisors and learning about their concepts. They are connected with brands that have proven success. This means they’ll help you get the right information. There are some questions you should ask every franchisor, but depending on the brand, there may be more specific items to bring up.
- Find opportunities you never considered: You might be familiar with the popular franchised donut shops and burger joints out there, but did you know that you could run your own drywall repair, mobile billboard or medical lab franchise? If you can think of it, it’s probably franchised, so think outside of the box. The best part about franchising is that you can totally reinvent yourself. After years as an accountant, you may never have considered running an art studio or a senior care business, but you can! You don’t have to have the specific industry experience to run most brands.
- Narrow your choices: Even if you’re set on a fitness franchise, there are dozens of options. Would you rather run a large-scale, traditional gym or a niche studio? If it’s the latter, you’ll still have to choose your brand and concept. Should you pick yoga, boxing or rowing? Maybe a mobile personal training brand would be best.
- Understand the pros and cons of each brand and model: Not all franchises are created equal. Maybe you’ve narrowed your choices down to three painting brands. Should you pick the one that’s been franchising for 20 years and has hundreds of locations or the one that’s just started offering franchise opportunities? Maybe the third option is somewhere in the middle.
- Uncover hidden costs: Some fees and expenses might not be clear from the first glance at a franchise brand. Will you have to pay for local advertising, or is it included? What does the franchise fee cover? Are you responsible for travel expenses during training?
- Gauge the risk level: There’s always some risk involved with any franchise investment, but how much are you willing to take? Do you want to go with a ground-floor opportunity or a tried-and-true brand?
- Meet industry professionals: Franchise consultants can introduce you to proven, established lenders and franchise attorneys. Talking to other franchisees is also a critical part of the franchise discovery process. A franchise consultant will help you ask the right questions and evaluate the feedback.
- Keep the momentum going: Everyone gets busy. Franchise consultants will send out reminders and messages to keep you on track and make sure you don’t miss any crucial steps within the process.
What You’ll Have To Do Yourself
Being thorough throughout the franchise discovery process is essential. It’s crucial to ask questions and do your research. Your franchise consultant can guide you, but ultimately, it’s up to you to put in the effort and do all the necessary due diligence. After all, investing in a franchise can be a huge, life-changing step — you want to get it right. Make the calls, review the materials and take the time to really understand the franchise opportunity.
Working with a franchise consultant is a lot like working with a realtor. While a realtor can show you homes in many styles, tell you the pros and cons of different neighborhoods, and make sure you are following the recommended steps, when all is said and done, you are the one who will pay for, care for, live in and create a life in your new home. It’s the same with a franchise investment.
A franchise consultant can guide you through the entire franchise discovery process and make suggestions based on your feedback, but the ultimate decision is still up to you. Only you know if you’re truly passionate about the opportunity. Only you can gauge your willingness and ability to put in the work to make it succeed. Only you know what your gut is telling you. Trust it — it never lies!
Source: Forbes – www.forbes.com