Franchise Consultants and Franchise Consulting firms have been at the core of franchising and industry consulting practices for decades. Franchisors and Franchise Consultants work closely together on a variety of franchise topics such as marketing, market research, business strategy, and financial and tax issues. At one time, the term ‘franchise consultant’ implied the very same relationship as any other professional service-to-business relationship where the franchise consultant charged a fee for services rendered. Today, however, the term franchise consultant is commonly used to refer to a range of consultants that offer franchising and industry consulting services. In this article, we’ll take a look at some of the various types of franchise consultants available today, and what their specific areas of expertise are.
One of the more prominent types of franchise consultants is a public relations firm. These companies typically hire a number of seasoned former executives from high profile corporations-all with ties to the franchisor’s brand name. They spend a lot of time talking to local media about the benefits of buying franchises, talking with news reporters about the problems that arise in the industry, and generally making themselves sound like a trusted expert in the eyes of the readers. Some of these companies also do a good deal of public speaking.
Another type of franchise consultants typically offers advice to new franchisees. They often have strong relationships with franchisors and know the ins and outs of the industry well. Their job is to help the new franchisee find work, train them properly, help them build a business plan, and generally guide them through the whole process. Many franchise consultants also provide mentoring and counseling services to new franchisees.
Common Types of Franchise Consulting Services
Yet another common type of franchise consulting service is that of a business law firm or intellectual property management company. These firms often provide franchise consultants with advice on how to legally set up a franchise, operate it successfully, and manage it successfully as well. They also counsel franchise owners on how to conform to local, state, and federal laws, including taxes, labor laws, and licensing regulations. The franchise consultants themselves are not the legal experts, but they are highly educated in matters related to franchise law. This helps them present the franchise owner’s side to the franchisor’s legal team.
The biggest area where franchise consultants are heavily involved is in acquisitions. The reason is that these firms often have a large number of active leads on hand, which they actively pursue. The leads they get are usually people who have been looking at franchises for a long time and are therefore already very familiar with the industry. They are much more likely to be receptive to a new franchise consultant than being fresh out of college or first entering the field. This is why many of the best franchise consultants are industry veterans.
Some dallas franchise consultants will go out of their way to make the prospect of buying a franchise seem as appealing as possible. Sometimes this comes in the form of offering incentives that might appeal to the potential franchisee. Incentives can range from freebies like a free breakfast to transportation to the franchisor’s warehouse, to discounted merchandise. Incentives can help potential franchise consultants make a strong case to the potential franchisee why he should select the franchise and pay the money up front.
The Finance Aspect Of Franchise Consulting
Another area where franchise consultants heavily participate in the buying process is the financing part of the process. They can obtain commercial loans from banks and other financial lenders to assist in purchasing a franchise business. Franchise consultants can also work directly with banks and financial lenders on loan applications. Many of these lenders prefer to work through a franchise consulting firm rather than working with an individual investor. This is because the franchise consultants already have relationships with financial lenders and are seen as a reliable and dependable source of financing.
Franchise consultants can make life easier for both buyer and seller. However, it is important to realize that becoming a franchise consultant is not for everyone. If you are determined to become a franchise consultant, then prepare to do some intense research and background reading on the industry. Franchise consultants should expect to interview numerous people and provide presentations to potential clients. Make sure that you feel comfortable with your prospects and that you are able to effectively convey your knowledge and expertise in the field to interested parties. You should also consider if you would like to develop your own practice or if you want to work for a consulting firm.