Who Can Help You Franchise a Business?

It’s challenging enough to entrust financial advice to somebody for even a moderate investment; entrusting that advice for an endeavor like franchising is a completely different animal. Franchise owners commit a huge chunk of time and money to a business, and it’s best to depend on professional consultations when setting an investment plan in motion.

Liane Caruso, the senior vice president of Entrepreneur Media, has seen virtually all facets of franchising and emphasizes the value that such professionals bring to the franchising process. “Finding trusted professionals who understand franchising is important to understanding the franchisor/franchisee relationship,” she said.

There are limitless ways that professionals can help a franchise operation, whether it be a legal professional drafting documents, a financial professional generating projections, or a logistics coordinator mapping out general solutions. Three sources of professional advice in particular — lawyers, financial analysts and brokers — are a perfect starting point for franchisees looking for professional help and guidance.

Franchise Lawyers

“It's certainly advisable to have a franchise attorney to review all documents and procedures to ensure protection throughout the transaction,” Caruso said. This can ensure peace of mind for a franchisee, making sure they aren’t met with any surprises after their initial investment.

Franchise lawyers are employed to help mitigate issues and develop a strong business strategy. This isn’t to say they are meant to alleviate all issues, of course, but their advice can make sure a franchisee does not find themselves in a bad partnership — which can be the largest issue of all. Franchise lawyers aren’t exactly cheap, but working with one can be far less expensive than the legal issues that could come without it.

Financial Advisors

“One of the most common resources prospective franchise candidates are seeking are financial advisors and financial guidance,” Caruso said. “They want to understand what financing options are available and how quickly they can expect to see a return on investment.” It can be easy for a passionate would-be franchisee to be blinded by financial details if they really love a brand, but some advanced financial advice can help prospective franchisees sift through these details and develop a viable roadmap for long-term operations.

Having this information early in a franchising process can ensure a franchisee does not buy into the wrong brand early on. Financial details are paramount in keeping the doors open at any business, and while financial advice will be necessary throughout all stages of franchising, the early phases can help set the tone for all future stages.

Franchise Brokers 

“Oftentimes, brokers are helpful in navigating the process as a whole and can provide valuable insight as well as competitive intel,” Caruso said.

A franchise broker can help clarify the motives of a prospective franchisee, mapping out their strengths and weaknesses. Commissions on this service can be costly, but so can some poorly made moves when pursuing a franchise on your own.

A well-versed broker can help a prospective franchisee understand how to be successful in a particular field; if a broker has worked with hundreds of franchise brands in the past, they can further recognize the state of development that a franchise is progressing through and the ideal franchisees that can help them get to where they want to go.

This means a franchise broker could often be the best source of advice for new franchise owners. They help franchisees identify where their passions and ambitions lie, and can share their insights on emerging and successful brands to the right prospective franchisees.