Starting a business can be an exciting, yet challenging process. Some people choose to go it alone, believing they know what kind of business they want to own better than anyone else. However, with around 3,500 to 4,000 different franchise options available across numerous industries and sectors, it can be overwhelming to find the right fit on your own.
Are you confident you can sort through thousands of franchisors to find the perfect one? Do you have the knowledge to make the right introductions and access to experts who can help review important legal and financial documents? Are you prepared to connect with current franchise owners to learn from their experiences? Do you already have your funding secured? And finally, do you feel ready to prepare for a franchisor’s Discovery Day meeting, where final agreements are made?
Answering these questions might be harder than it seems, especially if you’re doing it all by yourself. Fortunately, by working with a franchise consultant or broker, or reading the latest franchise industry news, you can get professional help for free. . These consultants guide franchise candidates through the process, helping them find the best match for their business goals. They are compensated by franchisors when a deal is completed, meaning there is no cost to the franchise candidate.
Here are six major benefits of working with a franchise consultant or broker:
1. Your Personal Franchise Coach
Franchise brokers and consultants aren’t salespeople. Their role is to guide franchise ownership candidates through the entire franchise exploration process, from beginning to end. This no-cost, no-obligation partnership is like having a personal coach, offering advice and sharing their knowledge and experience. Their primary focus is to help you make informed decisions based on what’s best for you.
2. Understanding What You Really Want
You may think you know the type of franchise you want to own, but in reality, the business that seems perfect could turn out to be a poor fit. Franchise consultants start by helping you figure out what you truly want from owning a business. They consider factors like work-life balance, income expectations, and your financial comfort level. To identify the best options, franchise consultants often use a personal assessment that helps you reflect on your goals and preferences.
3. Fact-Based Recommendations
Franchise consultants don’t rely on assumptions when presenting options. The personal assessment is used to gather data that aligns your preferences with the right franchise opportunities. Data-driven tools are often used to eliminate concepts that don’t match your skills, experience, or work-life goals. The end result? Franchise opportunities that match your unique requirements, giving you clear options based on facts rather than guesswork.
4. Making the Right Connections
Once you’ve narrowed down your options with the help of your franchise consultant, they will introduce you to the right people at each franchise brand. These are usually franchise development managers who are responsible for bringing in new franchise owners. As you move forward, you’ll likely meet more of the executive team.
Your consultant will also prepare you for important calls, validation meetings with current franchisees, and in-person visits. If you need a franchise attorney or accountant, your consultant can connect you with trusted professionals. Essentially, their job is to act as your guide and matchmaker, ensuring you meet the right people to help you succeed.
5. Navigating Important Documents
As part of the franchise buying process, you’ll receive a franchise disclosure document (FDD). This document is lengthy, with 23 sections, and is governed by Federal Trade Commission (FTC) regulations. It provides a detailed outline of the franchisor’s business, and your franchise consultant will help you understand each section, answering questions and addressing concerns along the way.
The same goes for the franchise agreement. This document spells out the roles and responsibilities of both the franchisor and franchisee. Having someone knowledgeable guide you through these critical documents is invaluable, helping you avoid any misunderstandings or surprises down the road.
6. Preparing for Discovery Day
Before you sign any agreements, you’ll be invited to attend a Discovery Day event. Also called “Meet the Team Day,” this is where you visit the franchisor’s corporate headquarters for a day full of meetings, tours, and conversations. Both sides get to know each other, and this is often when final decisions are made.
Your franchise consultant will help you get ready for Discovery Day, offering tips on what to expect, how to present yourself, and how to handle the discussions that will take place. Their advice will help you walk into this important day with confidence.
Extra Guidance from Certified Experts
Many franchise consultants have earned the title of Certified Franchise Executive (CFE), a qualification given by the International Franchise Association to those who have completed advanced training. This certification ensures that the consultant is well-prepared to guide you through the franchise process with the highest industry standards.
To get started, you can review a list of preferred franchise brokers from top suppliers or connect
with a franchise advisor from a trusted source like Entrepreneur. Another option is to speak with a career ownership coach, who can also provide insights and advice.
Conclusion
Working with a franchise consultant can save you time, money, and stress. They help you navigate the complex world of franchise ownership, making sure you don’t miss out on the best opportunities or make costly mistakes. Their guidance can be the key to successfully launching your franchise journey.