Franchise News

Franchise Information for Successful Business Ownership

When looking to venture into the franchise it will pay to seek the advice of franchise consultants. Franchise consultants wear many hats in a franchising arrangement. They will act as your financial consultant, business coach and therapist all in part. Franchise consultants assume all these roles to help their clients find a brand befitting their skills, financing ad objectives. This consultation will open the client’s eyes and see dangers he was oblivious to or opportunities unseen by untrained eyes. With the franchising market growing rapidly, the demand for franchise consultation is also on an upward trend. This is because would-be franchise owners provide information to their clients that help them go into the business confident they are doing the right thing. There are some aspects of this relationship all aspiring owners should bear in mind. Topping the list is the fact that the consultant is working for both the franchiser and franchisee. The franchiser will ultimately pay the bill for the consultant’s fees. Usually franchisors pay consultants a fraction of the franchise fee paid by new franchisees. Fees paid in this way will vary from one industry to another. The consultant will evaluate various aspects of your business including investment cost for franchisee, growth prospects, profitability and potential competition. They will carry out researches for you so as to come up with the most fitting match. Some consultants have networks of franchisee they have dealt with before. These would be the only ones they present to aspiring owners whether they are appropriate or not. This mostly happens due to the pressure to keep ahead of competition. As much a poor match affects both the franchiser and the franchisee, it will backfire on the consultant because it would be the end of getting business from the aggrieved parties. Franchisers rely totally on the consultant to thoroughly screen the franchisees. A consultant with a portfolio picked from a wide range of business categories is likely to give a better match. A good consultant will look for a match suitable for the franchiser and the franchisee. Franchisees often enter such franchising arrangements wary of the consultant’s dual role. This is akin to what happens in a real estate transaction. While some greedy consultants will only look to make a quick sale, others will remain with the client until their businesses are up and running. This makes for good relations and business referrals in the future.