Once you have decided to become a franchise owner, the next step is to determine how to find the right franchise opportunity.
You may find this hard to believe, but some new prospective franchisees actually decide to look for business opportunities themselves. After all, they are the ones who know best the kind of business they want to own. However, it’s important to note that there are about 3500-4000 different franchise concepts out there from a wide range of industries and business sectors.
How sure are you that you can browse through thousands of franchisors in the market and select the right one for you? Are you ready to make your own introductions? Can you get in touch with franchise experts, including industry-based legal and accounting professionals, who can help you check the franchise agreements and disclosure documents? Would you know how to find current franchisees of the brands you are pursuing? Have you already secured funding for your business? Finally, are you sure you can properly prepare for a franchisor’s Discovery day to complete your due diligence and finalize the contract?
It may be difficult for you to answer the questions above, especially if you are trying to navigate the franchise ownership journey all by yourself. But when you seek the help of an experienced franchise broker or consultant, you can receive professional guidance on how to go about the entire process for free. Franchise consultants and brokers help prospective franchisees find a franchise business opportunity that best suits them, and they receive a commission from the franchisor for every closed sale.
We have compiled below six advantages of working with a franchise broker or consultant to show you they can help:
Your Franchise Assistant/Coach
Franchise consultants and brokers are not sales representatives who might want to shove a franchise down your throat. They work hand-in-hand with prospective franchise owners to help them navigate the franchise research process from beginning to end. Without asking for any fee or obligation from you, they act as your franchise coach and assistant, advising you based on their many years of experience and expertise in the franchise space.
How Well Do You Think You Know Yourself?
While you might think you know the kind of franchise you want to own, your dream business could turn out to be something you will regret. Franchise consultants work with you early in the process to help you figure out what your want to gain from business ownership. They consider some important factors like income generation, flexibility, financial tolerance, etc. These consultants involve their clients in personal assessment of each franchise opportunity to help determine the best options for them.
Fact-finders
Franchise consultants don’t have preconceived notions when evaluating franchise opportunities. They carry out assessment exercises to look for facts about each franchise option, so they can show you those that match your personal preferences and preferred ownership style. Franchise consultants use data-driven algorithms to screen out franchise concepts that are not suitable for your top skill sets, business experience, work-life goals, and management style. What you get at the end of your consultation are just facts – plus franchise options that perfectly meet your criteria.
Matchmakers
Once you have worked with a franchise consultant to cut down the options, they will introduce you to the brand representatives of the franchise concepts that fit the bill. Many of them will be franchise development managers who bring in the new generation of franchisees for the company. You will get to meet other members of the C-suite executive team as you proceed on the franchise ownership journey.
Your franchise consultant will also prepare you for physical meetings, phone calls, and validation sessions throughout the whole process. They will use their network to find you a franchise accountant or lawyer if you don’t know of any. Their primary mission is to match you with professionals that can help you become a successful franchise owner.
Your Reliable Study Guide
During the franchise research process, you will receive a franchise disclosure document (FDD) from the franchise company you are interested in. The FDD consists of 23 different sections and is bound by FTC regulations. It contains detailed information about the franchisor’s business opportunity.
Your franchise consultant will go through each section of FDD and answer any questions or concerns you might have about the things you are yet to understand. They will also review the franchise agreement, which outlines the main roles and obligations of both the franchisee and franchisor. These important documents can be pretty complex, and you will be happy to have someone that will guide you through each of them.
Meeting Preparation
Before signing the franchise agreement, you will be asked to come to the franchise corporate office for the brand’s Discovery Day, also called Meet the Team Day. It is an action-filled day of meetings, discussions, tours, shared drinks, and final scrutiny, where each party weighs up the other and decides whether or not to move ahead. Your franchise consultant will get you ready for this important day, managing your expectations and giving you tips on how to dress, conduct yourself, and handle your moment of truth.
As you can see, franchise consultants can save you a lot of money, time, and headache by guiding you through your business ownership journey. Their professional advice can help you avoid common mistakes that can affect you as you take steps toward becoming your own boss.
Make sure to bear all these benefits of working with a franchise consultant in mind if you still want to face the battle alone.
