The Role of Franchise Consultants In Your Research Journey

Franchise consultants are among the key players you may come across during your franchise journey. Their in-depth knowledge can help individuals make informed decisions, ultimately increasing the chances of franchise success. 

Here’s a closer look at the role a franchise consultant can play in your journey. 

What Does a Franchise Consultant Do?

Franchise consultants offer guidance and support for those with less experience in franchising. They assist both franchisors and franchisees to establish successful franchise units. These independent professionals work directly with prospective franchisees to help assess their skills, interests and financial resources. Consultants also assist with market research, business plan development, legal compliance and ongoing support after the franchise is established.

“Our job is to work through a process with our clients to understand their business ownership goals and show them opportunities that would meet their needs,” said Katie Small, senior consultant at FranNet. 

Often, this includes guiding franchisees in the right direction in terms of industry — even if that means redirecting them. 

“A lot of times, clients come to us with a specific industry in mind,” added Small. “However, that industry may not match the lifestyle goals they are looking to accomplish. Therefore, it’s our job to bring them opportunities that fit their parameters.”

David Busker, a franchise consultant with FranChoice and founder of FranchiseVision, added that this process is a collaborative one. And the process isn’t going to be the same for every client. 

“Starting a business is an emotional financial and career decision all wrapped up into one, and no one is realistically going to make a snap decision,” he said. “It requires coaching, educating and guiding each candidate in a way that provides them all the tools and information they need to make this important decision.” 

Helping Franchisees Find the Right Fit

The knowledge possessed by franchise consultants can be particularly valuable when determining the type of business to go into. They can provide knowledge of market trends, as well as make important connections with other professionals in the industry. 

“I have been in the industry for 15 years or so and have seen the trends in the market,” said Small. “Trend versus fad is a big determining factor to understand what has staying power in the market and industry. I have direct knowledge and excellent relationships with vendors and industry specialists — funding, franchise attorneys, CPAs, etc. — to ensure my clients get the best experience while researching this significant life change.” 

When it comes to determining exactly what that right fit is, Small said that she starts off with a business acumen assessment and works through a series of interview questions to really understand what her clients are looking to change or improve in their life. Notably, this doesn’t always have to equate to what a franchisee is passionate about, contrary to popular belief. 

“From there, we work through a process of elimination on brands and industries that we agree could be a potential fit,” she added. “One misconception I run into quite frequently is that ‘I have to have a passion for the industry.’ I like to think of this from another perspective and show that the business doesn’t need to follow your passion. It should afford you your passion.” 

Navigating the Legalities of Franchise Ownership

Franchise consultants assist franchisees with legal aspects by explaining franchise agreements, ensuring compliance with laws, facilitating due diligence, connecting franchisees with specialized lawyers and guiding dispute resolution. They offer valuable legal insights while emphasizing the importance of consulting with legal professionals for complex issues. 

However, while franchise consultants can provide guidance on legal matters, they are not a substitute for legal counsel.

“We help connect our clients with the proper professionals during the process of working together,” said Small. “It is not our job to be a legal expert, rather guide the process and bring in the proper experts when our clients are ready.” 

Why to Consider Working with a Consultant

Overall, working with the right consultant can be a great asset for prospective franchisees in the due diligence process. Busker compared investing in a franchise to the homebuying process. 

“Like buying a house, or another really important investment decision, you can go at it alone if you choose,” he said. “However, if you’re looking for the perfect house that fits all of your needs and reduces your chances of making a major mistake, you’re likely to hire a well-qualified and experienced real estate agent who knows the market well. Finding a franchise business model is much the same way. Working with an experienced franchise consultant can reduce the frustration of finding the right brand.” 

However, Small emphasized the importance of finding the right match. Take a close look at the person’s background, prior ratings and reviews, and tenure in the industry to decide if they are a good fit for your franchise journey.