What does a franchise consultant do? In general terms they can take your franchise concept from idea stage to full blown market penetration. They advise you on creating your operations manual, brochures, franchise agreements and help you to market your franchises.
They can advise you on the best methods for raising capital not only for successfully launching your franchise but also for the franchisees to be able to afford to buy your franchise in the first place! Many new franchises fail at the first hurdle purely because they are underfunded at the initial stage.
They will also assist you in your business plans and setting goals. It is imperative that right from the start you have set targets to meet. These will probably need to be reviewed every quarter as real life figures take over from numbers in a spread sheet.
The secret of success in the franchise industry is to find the right franchisees. You can have the best business model but if you fail to make the right selection when recruiting then it is asking for trouble. Marketing using the right channels right at the start will make a great difference to the success of your venture.
The biggest gripe that many franchisors have with regards to franchise consultants is the exorbitant fees that they charge! Undoubtedly some consultants offer excellent service but not many young businesses starting out on the franchise route for the first time can afford their charges!
Some work on a fee only basis whilst others take a percentage of every franchise you sell! The first route is definitely the wiser option if you are sure that you franchise business will succeed and your cash flow allows for a large payment upfront. The second route is wiser if you are not sure about your concept and want somebody else to share the risk.
It makes sense to speak to as many franchise consultants as you can before you embark down this road. Even if you do not end up using their services, just by going through the process of getting a quotation you will learn so much about the franchise industry and the processes involved in successfully launching your franchise.
Creating, defining, marketing and launching a franchise is much more complicated than most people realise. It is not just about being able to sell your franchise but also involves putting support systems in place to help your franchise network. They will require ongoing training as new products are released. The poorer functioning franchisees will need the most help to make their business a success.
As the franchise network grows, more of the management’s time is taken supporting existing franchisees! This can hinder the marketing and growth of your franchise network. The ideal solution is to outsource your training and ongoing support.
If you get a professional franchise consultant whose sole aim is not to milk you for all your cash then it is possible to achieve much faster growth than going it alone. Speak to other franchisors to get recommendations. Some consultants are very good and can really help your franchise network grow quickly.
Naz Daud is the founder of CityLocal. This Business Franchise Opportunity is for people who would like to work from home and be their own boss.
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