Franchise consultant: a must for franchisors

With the booming franchise industry, new concepts and career opportunities are already making ways into the main stream franchising arena. Franchise consulting is one concept that has gained importance in the last few years. Aspiring entrepreneurs who wants to enter the field of franchising may feel satisfied by searching and hiring franchisees from the different websites. However, technology has its own limitations, as it cannot provide you with complete information, thus new as well as experienced franchisors must not fully rely on the information provided via internet. A better way to get expert’s opinion is by hiring the services of franchise consultants.

Who are franchise consultants?

Franchise consultants are the one employed by both the franchisors and the franchisees. The potential franchise owners employ them to choose the right franchise company to invest into. Similarly, the franchisors take up these consultants to act as an agent between them and the interested franchisees. Franchise consultants can be helpful in other ways as well. Rod Young, Executive Director, DC Strategy, a well known Australian company involved in consulting, research and legal work for building networks and brands of many international companies informed, “A good consultant can provide their years of experience in developing franchise networks both locally and globally. They are involved in everything from startup to the sale of the whole network to assist the prospective franchisors to make decisions on the strategy, structure, economics, commercial policies and recruitment, screening and selection methods of franchisees.”

Benefits of a franchise consultant for franchisors

Franchise consultants are usually employed by all progressing and successful franchisors. Let us delve into the possible reasons for it:

• Starting up the franchise: Franchise consultants can help prospective franchisors by guiding them on the path of success. For new franchisors whose who have no idea where and how to expand, the consultant assist them in starting and expanding the business.
• Forming economic and commercial policies: As the success of a franchise company depends on the economic and commercial policies of the franchisor, the consultants help them forming the various policies.
• Creating franchise agreement: The role of franchise consultants also include forming the various clauses of the franchise agreement. As the franchisor is new to this field, he may not be aware of the various clauses. Only an experienced consultant can guide him.
• Pre-screening of prospective franchisees: Franchisees being the foundation of a successful franchise company should be recruited carefully. One of the most annoying aspects franchisors deal with, are the under-qualified franchisees. Franchisors despise meeting non-serious candidates who do not know anything about the franchise model. A franchise consultant can select the serious and qualified franchisees and only the ones that meet the highest standards will be presented to the franchisors.
• Professional and personal details: The consultants can provide guidance to the franchisors regarding the professional and personal experience of the selected aspiring franchisees. As a franchisor you will have an in-depth knowledge of the prospective franchisee’s interest, goals etc.
• Getting expert’s advice: Another valuable service of franchise consultants is to provide expert’s opinion to the franchisor. New as well as established franchisors are always on the search for ways of increasing the profits of their companies. They can benefit if consultants lead them on the path of success. Related to this Young informs, “The commercial health of the franchisor is paramount if the franchise network is to succeed. That is why DC Strategy is focused on working with proven and profitable businesses to assist their management to make the right decisions about developing a franchise programme and the drafting of operations and procedures manuals.”

A word of caution

A word of caution for franchisors would be to select the franchise consultants carefully. Franchisors should employ the one with a successful proven track record and experience. As Young warns, “Too many consultants claim to have franchise experience but have only worked with a few franchise companies. Remember that what you are buying is experience to fast track your company’s success. Choose carefully and engage only the best advisors. After all, your future will depend on this decision.”

To conclude it can be said that consultants are a must for the success of every franchisor and his business. However, they should be chosen only after an intensive research by the franchisor.