What is the Value of Hiring an Expert Franchise Consultant?

Whether you are considering expanding your business through franchising or looking to enhance an existing franchise system, the decision to hire a franchise consultant is a significant one.  Partnering with an expert franchise development consultant with a proven track record can be invaluable. Let’s explore the role of a franchise consultant, the benefits they offer, and essential considerations for hiring one.

What is a Franchise Consultant?

First, let’s discuss the different types of franchise consultants that are in the franchise space.

Franchise Brokers for Lead Generation and Sales

Also sometimes referred to as a franchise consultant, a franchise broker is a resource that focuses on brokering franchise sales agreements. These franchise consultants or brokers can provide valuable services for established franchisors looking to accelerate their growth by outsourcing some of the lead generation and qualification services, with fees typically paid based on the successful sale of a franchise.

The services provided by a franchise broker typically include:

• Working with established franchises to find qualified franchisees
• Helping individuals or investors find an existing franchise to buy

Franchise Consultant for Business Development Services

By contrast, this type of franchise consultant is one that provides business development services for franchisors at various points in their growth life cycles. A seasoned and reputable franchise consultant of this type provides expert consulting services to:

• Businesses looking to expand through franchising for the first time
• Existing franchisors looking to improve their franchise systems

With extensive experience in and knowledge of the franchising industry, the right franchise development consultant can be an important resource for any franchisor. Their expertise, derived from hands-on experience across various industry segments, equips them with the insights, data, resources, legal acumen, and industry connections necessary to position your business for sustainable growth.

Franchise development firms, and their individual franchise consultants, may specialize in:

• Competitive Research
• Strategic Planning
• Financial Modeling
• Organizational Analysis and Planning
• Operations Manuals
• Training Curricula
• Online Learning Systems
• Primary Research into Buyer Profiles
• Franchise Lead Generation / Marketing Plans
• Franchise Sales E-Brochures
• Website Content and Development
• Franchise Sales Training
• …and more

The breadth of these services as well as depth of experience is important if you’re looking for a long-term relationship with your consulting firm. You need to be confident you are working with a firm that can support your franchise system through franchise structuring, quality control, marketing, and sales – both now and in the future.

Key Factors to Consider Before Hiring a Franchise Consultant

Not all franchise consultants or consulting firms are created equal. Therefore, it’s essential to conduct thorough due diligence and evaluation before making your selection to ensure that your investment is worthwhile.

Integrity

Assessing the integrity of a franchise consultant is extremely important. For example, if a consultant encourages you to franchise prior to evaluating your business, goals, and resources, it’s a red flag. They are just looking to land a client, and don’t have your best interest at heart. Franchising is a great way to expand a business, but it’s not a one-size-fits-all solution. If they are not diligent in vetting your business for franchisability, it’s not wise to put your business into their hands.

Quality

Not only is integrity important, the quality of people at the franchise consulting firm is as well. The ability to do great work depends on the quality of the consulting team as whole. Review the firm by browsing their website, and also get answers to the following questions:

• How many consultants does the firm have on staff? This is important to know in the case that your individual project consultant is temporarily unavailable.
• Do the consultants have previous experience working with and for franchise companies?
• What kind of education do they have? Do most senior staff have advanced degrees, or do they appear to be recent college graduates?
• What is their track record, and can they provide client testimonials or industry awards?
• Do they have experience providing franchising services in your industry? Check out their client lists.
• If you are a start-up franchisor, do they have experience with emerging franchise operations? If not, they may not be able to provide the guidance needed to start a franchise from the ground up.
• Do they possess expertise in franchise marketing and sales? Effectively selling franchises is a crucial component of franchise expansion, and it’s reasonable to assume that lacking hands-on experience in franchise marketing could hinder their ability to foster your franchise’s growth.
• What is their reputation? Who have they worked with, and is it backed by client testimonials?
• Do they have a strong leadership team? Look for online publications, interviews, social media presence, etc.

Is Hiring a Franchise Consultant Worth the Investment?

It depends on who you engage for services. By interviewing multiple firms, conducting thorough research, and assessing their track record and reputation, you can make an informed decision.  When you select a reputable firm with experienced consultants, you can potentially save money and achieve long-term benefits:

• Expert consultants can help you avoid expensive errors.
• Insights from experienced advisors can optimize your franchise program.
• Knowledge of franchise laws and regulations, along with the counsel of your franchise legal team, can prevent potential legal issues.
• With their dedication of time and resources to your franchise program, you are their priority, and can do some of the heavy lifting as you continue to run your daily business.
• They can help reduce the risk of failure in a new franchise business model. Your consultant is dedicated to improving results through strategic implementations of franchise structuring, documentation, marketing, and sales, to increase revenues and lower expenses, to optimize results and help you reach your growth goals.