A franchise consultant assists those who are interested in buying franchises as well as those who are selling them. He helps guide buyers, potential franchisees, in evaluating various franchise opportunities and choosing the one that is most suitable. The manner in which a franchise consultant helps the seller of a franchise, called a franchiser, differs. In some cases, franchise consultants help connect franchisers with potential buyers. In other cases, they may help business owners turn their companies into franchises, providing help with everything from creating franchise agreements to developing marketing plans.
When a potential franchisee decides he wants to purchase a franchise, he may become overwhelmed with the sheer number of business opportunities that are available to him. Deciding whether a franchise is a good match for his skills, interests, time commitment, business experience, and available investment money can be hard. While a franchise consultant doesn't make the decision for the buyer, he can help him analyze the most suitable opportunities and make a wise choice. An individual in this field is supposed to have the experience necessary to help potential franchise owners understand an opportunity's strengths and weaknesses and then make the best possible decision.
Often, a franchise consultant works with franchisers who have businesses they want to sell. In this capacity, consultants may work to help with planning and implementing strategies to get a franchise opportunity up and operating. They may help with the creation of franchise agreements, for example, or assist with the marketing of the franchise. Sometimes these professionals also offer training or provide much needed support to franchisers who are in all stages of the business. In many cases, franchise consultants also help screen potential franchisees.
The manner in which franchise consultants make their money varies from consultant to consultant. Many franchise consultants work on a commission basis, collecting payment from a franchiser after the successful sale of a franchise opportunity. In such a case, a person who wants to buy a franchise can obtain help for free. In other cases, an individual who wants to buy a franchise pays a fee for a franchise consultant’s help. Likewise, a franchiser may have a fee-based arrangement with a franchiser rather than a commission-based agreement.
Some people believe a franchise consultant who charges a fee is less likely to direct his clients toward an undesirable opportunity, as he's not hoping for a commission. Franchise consultants are not supposed to steer their clients toward poor opportunities in an effort to make sales, however. Such behavior is generally considered unethical.
