Becoming a Franchise Consultant – A Beginner’s Guide
For the sake of clarity, a franchise business consultant, also known as a franchise broker, is an individual that provides a linkage between a Franchisee (one who operates a franchise) and a Franchiser (one who owns the franchise).
Do you know that a number of financial statistics state that owning/operating a Franchise is one of the most profitable businesses available today? The reasons are not far-fetched.
For starters, a Franchise is modeled on a business structure that has proven successful in one area and can therefore be replicated in another area.
A franchise is also flexible enough to accommodate the peculiarity of the selected area of operation. A franchise also offers the opportunity for franchisees to garner skills, competencies and proficiency over the course of running the franchise.
Once you are able to display a firm grasp of these aspects of the franchising business, then you are well on the way to becoming a Franchise business consultant.
This linkage usually results in the creation of a mutually rewarding franchise agreement between both parties. The restaurant franchise business consultant is then offered or is entitled to a commission, which is dependent on the terms of the agreement drawn-up.
As a franchise business consultant, you will be expected to perform the following duties:
1. Drawing up the details of the franchise agreement, taking into consideration the obligations and responsibilities of the parties involved. This may also include the financial aspects of the franchise agreement.
2. Carrying out detailed research on the suitability of intending franchisees. You will also be expected to provide excellent valuation of low cost franchise opportunities for your clients.
3. You may also serve as a marketing agent for a Franchiser.
In the light of the above, the following can serve as guides in your bid to become a franchise business consultant:
List of Business Consultant Franchise Opportunities
Your first step in becoming a franchise business consultant is to clearly state your business strategy in terms of franchise consulting.
Your business plan template should help answer questions regarding what kind of franchises you can work with, what criteria intending franchise applicants must fit, your industry niche or specializations, your financial projections as well as your plans for growth.
A detailed business plan is a veritable tool that can also help you receive funding from finance houses and institutions.
B. Have a List of Researched Franchises
It is important that you have a working knowledge of all the available franchise owners (franchisors) in your vicinity or base of operation. This process may involve you having meetings with these categories of business owners, who are disposed to outsourcing their franchise operations.
You will need to thoroughly understand the structures and processes of any franchisor you choose to work with, in order to adequately help your prospective franchisees, make informed decisions from your consultancy.
As a franchise business consultant, it will become necessary for you to operate from a good, accessible location. You could begin from home as a starting option, especially to cut down on costs.
However, since the nature of your business involves hosting meetings, it will give your business credibility and an air of professionalism if you can operate from an office.
Your franchise business consultancy will flourish when you put in place measures to attract clients from both sides of the divide. In other words, you must be able to scout first of all for businesses that will be open to having you as an agent in finding suitably qualified franchisees.
In the same vein, you should effectively be able to find individuals and businesses that will be willing to enter into franchise agreements as a result of your guide and consultation.
E. Attend Business Meetings and Networking Groups
As a franchise business consultant, one of your key goals is to give visibility to your business. A veritable means of doing this is to attend business meetings and network groups that feature ventures that own franchise systems.
You can also join associations and chambers of commerce in order to garner contacts and have a circle of influence. An example of an association you can seek membership in is the Franchise Brokers Association(FBA).
As a franchise business consultant, you must be adequately prepared by having a legal practitioner prepare and vet your agreement papers and other documents.
In your line of business, you must prepare for the possibility of disputes arising or for when one or more parties renege on signed terms and agreements. Having a legal background or having a lawyer represent you will take care of eventualities such as franchise fraud.
G. Constantly Update your Knowledge
It is imperative as a franchise business consultant that you always seek to be informed about the latest happenings in your sector. This stance should also see you keeping abreast of fiscal and monetary policies as it affects franchises and their operations.
When you have needed information, you are better placed to offer insightful advice to both franchiser and franchisee under any circumstances.
The above list is by no means exhaustive. Your journey as a franchise business consultant will place you at the fore of matters affecting the franchise industry in your locality. You will need to always have the tools and resources to function effectively as a franchise business consultant.