Franchise Consultants

Buying a Franchise? You Don't Have to Go It Alone

by AMY COVINGTON

These days, you can find almost anything on the Internet. We've all done it - sat down in front of the computer intent on looking up one topic and find ourselves so engrossed in the sea of information that hours pass. When you are looking for a franchise opportunity, hours can stretch into weeks or months while you wade through websites trying to pinpoint the exact match. Some franchisors require high investment capital as high as $1 million, while investment requirements for others are as low as $10,000. Each franchise company has their own set of criteria for becoming a franchisee, including securing property and equipment or licenses, others only require a check that won't bounce and a winning attitude. With over 1,600 franchisors out there, narrowing down your choices is a daunting task. This is where franchise consultants enter the picture.

What are Franchise Consultants?

Franchise consultants are franchise industry experts who've been through the franchise process hundreds of times. Think of them as orchestra conductors; they know how to play each instrument and guide their symphony through the process of a complicated performance. Likewise, franchise consultants know the ins-and-outs of the franchise business and can help match you with the right business opportunity.

Who Knows You Better than You?

Have you ever heard the expression to not be able to see the forest for the trees? Sometimes it takes an outside observer to point out what we can't see ourselves. You may think you know what business in which you'd like to invest, but franchise consultants can raise issues that you may not have considered. For example, have you thought about how much status means to you in your business dealings or do you only care about making money? You could potentially make a good living operating a business such as septic tank cleaning-but are you comfortable telling your friends and acquaintances about your line of work?

What's In It for You

Investing money in a business is a life-changing decision. There are many things to consider in the process in addition to selecting an actual franchise company, from finding the right location, hiring staff, and leasing or buying equipment. If you go it alone, you may overlook critical issues, which could come back to haunt you. Retaining a franchise consultant can shave weeks or months off the time it takes to complete the franchise process, as well as provide a reassuring ear to which you can voice questions. Franchise consultants can help avoid the overwhelming task of finding the right franchise opportunity among the hundreds of companies. Franchise consultants have a wealth of qualified franchisors at their fingertips, whereas on your own you may have to scour hundreds of websites and make dozens of phone calls in order to find just one viable option. "The franchise consultant brings to this equation the experience of being able to look at all the options and point out the best franchise for the individual," said George Knauf, a consultant at FranChoice. "We work on the candidates' side of the fence so that they understand the franchise process. Investing money in a business is like the first time on the high dive, you get the knot in the bottom of your stomach."

The Process

Oftentimes people are drawn to brand awareness instead of how a particular business aligns with their goals and skills. In order to match a candidate with the best fit, franchise consultants provide a questionnaire, which gauges your interests, experience and goals. The survey serves to create a snapshot of the industries in which you are interested, i.e., retail, technical, automotive, home based and preferences such as how much time you want to spend working during the day or week, and skills assessment, including whether or not you enjoy selling or want customers come to you, and how many employees you want to manage. "Our questionnaire is full of factual questions," said Steve Hockett, president of FranChoice. "This starts the process."

Once the data is in, franchise consultants get to work pairing you up with on-target opportunities. Franchise consultants have devised systems wherein they input your statistics and come up with companies that fit your personalized model. The next step is your consultation, which can take up to two hours, where your assigned consultant tailors your plan even more to find the best match. "During the consultation we encourage introspection to find out candidates' dreams and motivation," Hockett said.

Franchise Consultants pair you with franchise companies from a database. Depending on the franchise consultant you pick, the method for compiling the database varies. FranChoice, for example, spends time pre-screening franchisors, talking to them directly, reading through UFOCs (Uniform Franchise Offering Circular) and offerings, as well as interviews existing franchisees.

How much will it Cost?

Depending on which franchise consultant you choose, it could be free. Some consultants charge a fee on the front end or may charge you if you decide not to work with them. Others collect their fees from the franchise company after the close of a sale. "A lot of people are afraid that it will cost them something," said Knauf. FranChoice does not charge a fee to franchisees at any stage of the process, their fees are paid by the franchise companies. "When franchisees work with us, they are happier and more confident in their decision because they didn't arrive there by luck."

The Decision is Yours

Ultimately, you make the final decision - it's your money and your time. Some proponents of hiring a franchise consultant argue that franchise consultants are motivated by the desire to collect fees by closing deals, hence they may rush you to a decision. While there are always unscrupulous operators in every industry, any legitimate consultant is going to point you to resources and step back, letting you decide for yourself. Franchise consultants depend on their reputation and the success of their business relies on assisting people in making confident, informed decisions. "A franchise consultant should be someone you have a good rapport with and can talk to; a good consultant will not mind talking to you," said Knauf.

If you choose to hire a franchise consultant, the following tips can help you stay in control of your decision and investment.

• Always find out a franchise consultant's background and experience. If they have never bought a franchise and operated one, how can they advise you?
• Meet with the franchisors and get to know the history of the company.
• Meet with as many franchisees of the company in which you are interested.
• Conduct a comparative analysis of competing businesses.
• If you feel it's necessary, hire a franchise attorney to assist with real estate issues and contract matters.
• Thoroughly read all materials relating to the transaction including the UFOC.
• Take your time, don't let anyone make you feel rushed to make such an important decision.
• Be realistic about your financial situation.
• Verify information you feel is second hand, don't take anyone's word for it.

• Try the #1 Nationally-trusted Free Franchise Matchup Service
• Be Your Own Boss!
• Find The Right Franchise For You... and Your Family!