Aspiring entrepreneurs and business owners navigating the space of franchising may find it quite overwhelming at first. There are things such as intellectual property and trademarks to consider alongside the franchise fee, initial investment, training and support, marketing and advertising and everything in between.
In such cases, it is always a good idea to speak to someone with knowledge and experience in the industry, apart from the franchisor themselves. Someone with an outside perspective who can help guide you to make an informed decision for your future. That person is a franchise consultant.
If you aren’t clear on what role these individuals fulfil in the franchise space or what their responsibilities are, this post is for you. Below, we also explore how franchise consultants differ from franchise brokers. Let’s take a closer look.
What is a franchise consultant?
To arrive at a definition of a franchise business consultant, it’s a good idea to break up the words to get their individual meaning. A consultant, in general, is a person with professional knowledge and expertise who provides advice.
In cases of franchise businesses, they specifically provide franchise-related advice to prospective franchisees. This advice and guidance is aimed to help aspiring business owners make the best investment for their money and professional aspirations.
As such, a franchise consultant can be a sounding board, a person who can answer questions and concerns objectively and ensure your money works for you when you’re looking at various franchise opportunities and are aiming to narrow down your options.
What does a franchise consultant do?
In franchise consulting, a franchise consultant can do a myriad of different things for their client. They can offer advice, guidance and help in choosing the right franchise opportunity. They can go through the franchise agreement and explain the key terms and conditions that a new franchisee would need to adhere to.
Other areas in which they can help is looking at the most suitable ownership model, aligning the prospective franchisee’s personal and professional goals with their franchise opportunity, selecting brands and many other aspects.
Is a franchise consultant the same as a franchise broker?
Although they are often used interchangeably, franchise consultants and franchise brokers are not necessarily one and the same job. There are several differences worth bearing in mind, which relate to who they represent or work for, how they are paid and what duties they carry out. A few of the key differences are outlined in more detail below:
Franchise consultant
- Services are employed by: Prospective franchisees, aspiring entrepreneurs and people who want to become involved in business using the franchise business model.
- How they are paid: Franchise consultants operate on different pricing and tier structures, depending on the services they provide. Sometimes, they charge a fixed fee while other times, it is a per-hour fee for consultations. These fees vary from consultant to consultant.
- Duties: Some of the chief duties of a franchise consultant are to help guide a prospective franchisee through the process of choosing the right franchise opportunity for their needs, budget and goals.
Franchise broker
- Services are employed by: In most cases, franchise broker services are used by franchisors who are looking to expand their franchise network. These brokers may market the specific franchise opportunity to aspiring business owners and attract them to join the network.
- How they are paid: Franchise brokers are typically paid a commission for every franchise sale that they help broker. This usually ranges between 10% and 20%, however, fees differ widely from one broker to another.
- Duties: The duties that these individuals are tasked with include vetting and attracting new prospects to a specific franchise. They may represent one or several franchises and they need to ensure that they find the right fit. They can do so by marketing the franchises in their portfolio, which sometimes offers aspiring franchisees with few options to consider.
Conclusion
Using the services of a franchise consultant when considering embarking on your business venture with a franchise brand behind you is a wise idea. However, you are always encouraged to speak to the franchisor directly as well as other franchisees in their network to determine if the opportunity is a good fit for you.
Ultimately, if you want to become a franchisee with the Belvoir Franchise Group, you will receive immense levels of support before, during and after signing the franchise agreement, ensuring you have the full backing of an established brand behind you.
