What Does Franchise Consultant Do?

Who is a franchise consultant?

A consultant is someone who gives you advice or expertise in a specific field. A franchise consultant is someone from whom you consult the twists and turns of the franchise world and teaches you how to work. Franchisors and franchisees, both take benefits from the franchise consultant. A consultant is a specific person who answers big questions about franchising and being successful. Potential franchisees don’t know what they want or how to get there and where to start. A franchise consultant can help you with all of these questions and many more.

A franchise consultant is very much different than a franchise broker. A franchise broker is someone who is trying to sell franchises in place of the franchisor. It is just like a real estate agent who is convincing the buyer to buy the house. The difference between a consultant and a broker is just like psychologists and psychiatrists. Psychologists only advise people, whereas a psychiatrist works as a medical professional and cure patients. Both are similar and have similar patients, but are very different.

What does a franchise consultant do?

There are many ways to define a franchise consultant. Their job is to help franchisors to expand their businesses. In past years due to the growing demand, franchise consultants are both helping franchises expand and finding franchisees to invest. Franchise consultants sit down with their clients and discuss their interests and skills and determine the best franchise. They help them with every step. If we see as a franchisor, they provide ideas and concepts to expand and attract franchisees.

Franchise consultants are incredibly beneficial for a franchise as well as an individual looking for opportunities. They make a difference in the success of businesses as well as franchisees.

Things franchise consultant do for you.

Following are some main things that a franchise consultant do for you:

  1. The consultant helps you to determine your financial qualification.
  2. They advise you about which type of lifestyle you have to maintain when you own your franchise business.
  3. Make a financial plan in which it is clearly shown about your long-term financial goals that you have to achieve through your franchising business.
  4. Work with those types of franchisees and franchisors that can benefit you and your business.
  5. Explain in detail the pros and cons of having your own franchise business.
  6. Recommend some franchises that fit your personality and interest and help you achieve goals, lifestyle, family needs, and financial needs.
  7. Show you all facts and figures about franchise business opportunities that you are looking for.
  8. Guide you in every step of the discovery to ensure the proper diligence before deciding on proceeding with a franchise unit’s purchase.
  9. Take a look at the price of every franchise. Guide them to buy a reasonable and exciting franchise.
  10. A consultant has to stand with you at every step through the purchase process.

The actual job of a franchise consultant

A franchise consultant’s job is to help and guide clients through finding and purchasing a franchise.

Following are the few duties of a franchise consultant:

Manage all expectations of the client

During the whole process, you will want to manage your client’s expectations and provide them with objective information that the Franchisor would not know. Your role as a Consultant does not stop once the franchise is selected. Your work is to guide answers to all questions that your client may have in mind during the franchise discovery and research process and advice when needed. You can also help them in the process along by introducing them to lawyers.

Work with franchisor

Franchisors love to work with Franchise Brokers who stay involved during the whole process. So, it is essential to remain engaged from starting till the end. It is also rewarding to see your client’s dream of business ownership come to fruition.

Working with Franchisors is not the only means to introduce them to clients, but the most exciting and fun part is this business is building relationships with others. When a Franchise Consultant makes a close bond with a Franchisor, it makes that the entire buying process is enjoyable for you and your client.

Franchise Consultant Roles and Responsibilities towards both Franchiser and Franchisee

The downfall of the market is part of every industry. Many people are searching for security to get rid of this problem. For business owners, that can mean turning to a franchise rather than starting their own business. A franchise business is one that comes with a track record and a built-in support system.

Anyone interested in purchasing a franchise can be familiar with the franchisor’s roles and the franchisee. Still, in searching franchises, they will come across what might be a less familiar term: franchise consultant.

There are also small business owners interested in franchising. They would like to take your existing small business and turn it into a franchise, becoming franchisors themselves. For this purpose, many people work with franchise consultants.

Roles and responsibilities towards Franchisor

Franchise consultants help small business owners to take their existing business and turn it into a franchise. Franchise consultants can help you in everything from writing up the original franchise agreements to operations manual to marketing materials for helping the franchise grow once it’s off the ground through providing them training and support.

When franchising a business, it is impossible to do a job without a quality franchise consultant and a franchise attorney. There are good franchise consultants, but the business owner must ensure that they are not being sold on franchising their business.”

Some franchise consultants work on a fee basis while, on the other hand, some earn a percentage of the sale from each of a franchisor’s franchises. Franchisors who can afford an upfront payment go with a fee franchise consultant because the cost will be a known quantity—those who do not want to pay the franchise consultant upfront to choose a commission-based franchise consultant.

Roles and responsibilities towards franchisee

A franchise consultant acts as a guide for a franchisee by guiding them through finding and then purchasing a franchise and understanding the franchise industry. The franchise consultant can help the franchisee know what the franchise purchase might be based on their price range, they want a management franchise or to become their full-time job. With their expertise, they can point out the weak spots in the business plan. Their effectiveness can depend in part on how they are paid.

A franchise consultant is one who offers services to a franchisee for free and earns a commission. To bring a paycheck, this franchise consultant will need to sell franchises. They try their best to push a franchisee into making a franchise purchase that the best deal because they need to make a sale to make money.

Franchise consultants paid by the commission could still have great advice and help the potential franchisee make a wise investment, but franchisees should be cautious and make sure their due diligence has been thorough.

There are also fee franchise consultants with whom a franchisee could work. They receive their fees upfront. They would not fall into the trap of pushing the wrong franchise to sell. Take all the consultant’s legitimate guidance, but make sure that you like the deal as much as the consultant or seller.

How much does a franchise consultant make?

There are three ways a franchise consultant can make money.

  • Earn commission by selling franchises
  • Earn commission by helping small business to become a franchise
  • Earn by referral fees

Earn commission by selling franchise

The Franchise Consultant business avails the opportunity to earn income. Your earning is totally up to you only. Just like any other business, your level of success is determined by your level of effort. You can generate more commissions by making successful matches between the Franchisee and the Franchisor. Matching clients with Franchisors are not the only way you can make money as a Franchise Consultant.

Earn commission by helping small business to become a franchise

Have you ever walked into a business and said to them that, “there should be like these in every town?” How about introducing to someone who can help them franchise their business? The IFPG has strong relationships with Franchise Development companies that will pay a referral fee, so that small business decides to franchise.

The IFPG has partnerships with many top franchise development companies in the industry. Many companies pay commissions to IFPG Consultants. This will help you offer and target local small businesses in your area to franchise their business.

Earn by referral fees

Consultants can also earn money from referral fees from IFPG Vendors. Many of the lenders in the IFPG Vendor will pay you a referral fee if your client uses them to fund the purchase of their franchise. Most clients will need some type of funding help. So, the IFPG Lending Partners can help you close deals faster.