While looking into your next franchise venture, you might run across the term “franchise consultant.” If you have never seen this term before, you are probably wondering what it means.
The term franchise consultant can be used in one of two ways. The first definition of the term is someone who acts as a consultant and specializes in helping a franchise improve their business practices, ultimately to improve their bottom line. However, this is not the most typical definition of the term.
The second definition of the term franchise consultant is someone who helps a potential franchisee locate the right franchise opportunity. Typically, this type of franchise consultant will help people at both ends of the business transaction. This is the most commonly used definition for the term.
Why Do You Need a Franchise Consultant?
In a market, full of ups and downs in almost every industry, established business owners as well as potential entrepreneurs are looking for certainty and security. A franchise is one of the best opportunities to become a profitable business owner. Having the support and guidance from a business with a proven track record, built-in business model and a typically smaller capital investment than starting from scratch, resulting in faster profits! However, if you are new to the franchise industry, the help of a seasoned franchise consultant could make all the difference in both your profits, your overall experience and future success.
Franchise consultants boast both experience in the franchise industry as well as valuable connections in the financial space. Both traits can be incredibly valuable to your business growth and success. Triton’s work with franchise consultants will assist you in locating the financial resources, franchise opportunities as well as guide you in the decision-making process required to succeed and build wealth with your new franchise business.
Another aspect of a franchise where you might look to a franchise consultant for assistance would be if you are looking to turn your business into a franchise. Sometimes, small business owners turn their business into a franchise to capitalize on their ideas while increasing the amount of business equity in a way that allows the business to grow faster and more efficiently. A franchise consultant can offer you the tools you will need to get started, connect you with good business partners and the contacts you will need to build a successful franchise.
How Does a Franchise Consultant Make Money?
Working with a good franchise consultant should not cost you, as the client, any money. Depending on which side of the business transaction the franchise consultant is working, they are paid by the franchisor and the finance company.
If you act as a franchise consultant for the franchisee, you will typically be paid based on performance. When working for the franchisee, a franchise consultant will guide a potential franchisee in deciding which franchise is the best fit for them. They will consider their strengths and interests when considering which franchises to suggest. The goal of the franchise consultant who works for the franchisee is to educate them on a specific franchise. The franchise consultant will then be paid a commission by the franchisor.
If a franchise consultant is working for a franchisor, meaning they are aiding a small business owner in turning their business into a franchise, they typically work on a fee-basis. The franchise consultant will generally help every step of the way – from writing up the original franchise agreements to helping the franchise grow once it is off the ground. The franchisor will pay the franchise consultant and fee for their agreed services. The franchisor can pay the franchise consultant a set percentage of the sales of each franchise as well in such an agreement.
How to Find a Franchise Consultant.
A franchise consultant can be one of the best assets to your business and future success, but it is important to ensure you are working with someone who is the right fit for you. Below are a few key traits to watch for when choosing a franchise consultant.
- Industry Experience. The greatest knowledge comes from experience. After all, one of the main purposes of enlisting the help of a franchise consultant is the access you gain to their knowledge. The area of expertise will vary based on the industry of the franchise consultant. There is one out there that works for you and offers the industry experience you need; you just have to find the right one.
- Industry Reputation. This trait is huge – they will also reflect your business. Another reason for hiring a franchise consultant is their contacts in the industry, and someone with a bad reputation has most likely burned most of their bridges.
- Commitment. Finding the right franchise consultant also means making sure they will be there for you through the entire process, from helping you select the right franchise to making sure you understand the Franchise Disclosure Agreement. You don’t want to hire someone who abruptly disappears when you need them most, leaving you with no other option than trying to quickly find another franchise consultant who is a good fit for you and your goals.
Triton has a great program for anyone, including Veterans and Retirees, who are interested in earning additional income in the Franchise Industry. Click here for details or call 770-249-2357 and ask to speak to one of our Franchise Specialists for more information.