Starting a business through franchising can feel overwhelming for new entrepreneurs and business owners. There are many factors to consider, such as intellectual property, trademarks, the franchise fee, the upfront investment, training and support, marketing, and advertising, among others.
In these situations, it is helpful to speak with someone who understands the franchise industry well. This should be someone other than the franchisor—someone who can provide an independent opinion and help you make the right decision for your future. That person is a franchise consultant.
If you are unsure about what a franchise consultant does or what their responsibilities are, this article will help. We will also explain how franchise consultants are different from franchise brokers. Let’s explore this in more detail.
Who is a Franchise Consultant?
To understand what a franchise consultant does, it helps to first look at what the word “consultant” means. A consultant is someone with knowledge and experience who offers professional advice.
When it comes to franchise businesses, a franchise consultant gives advice to people who are thinking about buying a franchise. Their goal is to help potential franchisees make smart choices with their money and find a business that fits their personal and career goals.
A franchise consultant can act as a guide or a support person. They can answer your questions, help you consider your options clearly, and make sure you are choosing the right franchise opportunity for your needs and budget.
What Does a Franchise Consultant Do?
Franchise consultants offer a wide range of services. They can help you:
- Find the right franchise opportunity based on your goals and budget
- Understand the franchise agreement by explaining important terms and conditions
- Look at different ownership models and help you choose the one that suits you best
- Make sure your personal goals and business goals match the franchise opportunity
- Review different brands to help you make a smart choice
Are Franchise Consultants and Franchise Brokers the Same?
Even though the terms are sometimes used as if they mean the same thing, a franchise consultant and a franchise broker are different. The main differences include who they work for, how they get paid, and what they do. Here is a breakdown:
Franchise Consultant
- Who they work for: People who want to buy a franchise or become business owners through the franchise model
- How they are paid: Their fees vary. Some charge a fixed fee, while others charge by the hour. The cost depends on the type and level of service they offer
- What they do: They help guide potential franchisees through the process of finding and selecting the best franchise for their needs, budget, and goals
Franchise Broker
- Who they work for: Most often, they work for franchisors who want to grow their network by selling more franchises
- How they are paid: They usually earn a commission for every franchise sale they help close. This can be anywhere from 10% to 20%, though it may vary
- What they do: They promote franchise opportunities to potential buyers. They may work with one or more franchise brands and are responsible for finding suitable buyers. This often involves marketing the franchises they represent, but it might limit the choices available to the buyer
Conclusion
Working with a franchise consultant when you are thinking about starting a franchise business is a smart move. Still, you should also talk directly with the franchisor and other franchisees within the network. This will give you a clearer picture of whether the franchise is a good fit for you.
If you decide to become a franchisee with the Belvoir Franchise Group, you will receive strong support before, during, and after you sign the franchise agreement. This helps ensure that you are not alone in your journey and have the full backing of a trusted brand.
