A potential business owner that has an interest in purchasing and running a franchise would benefit from the services of a franchise consultant. A franchise consultant can provide expertise and guidance throughout the entire process. Listed below are 12 reasons that it can help you and pay off in the long run to use these service.
1. The service is free to the franchisee, with the franchiser covering the consulting fees.
2. The service is personal and confidential.
3. The consultant guides the potential franchisee through the entire process of deciding whether to become a franchisee, and how to go about it.
4. A detailed profile including an evaluation of the potential owner’s experience, interests, and goals is complied in order to match the new franchisee with the most suitable opportunity.
5. Education is provided on the various types of ownership and investment options.
6. Investigation into the most suitable opportunities that are available is done by the consultant.
7. Initiation of contact with company representatives is part of the service.
8. The consultant helps to verify each company’s success and track record.
9. The potential business owner saves time and money by having the experts perform research on various opportunities.
10. The consultant acts as the one-stop shop, answering questions and referring the potential owner to other resources as necessary, such as financial or legal advisors.
11. The consultant works with all types of franchises, including full-time, part-time, new units, and re-sale franchises.
12. Complications and confusion are virtually eliminated by having an expert perform these services.
Overall, a franchise consultant will help you determine if franchising is right for you and if so, what type of franchise opportunities you are most likely to succeed in.
In addition to a well-known brand name, buying a franchise offers many other advantages that aren’t available to the entrepreneur starting a business from scratch. Perhaps the most significant is that you get a proven system of operation and training in how to use it. New franchisees can avoid a lot of the mistakes start-up entrepreneurs typically make because the franchisor has already perfected daily operations through trial and error.
Reputable franchisors conduct market research before selling a new outlet, so you’ll feel greater confidence that there is a demand for the product or service. Failing to do adequate market research is one of the biggest mistakes independent entrepreneurs typically make; as a franchisee, it’s done for you. The franchisor also provides you a clear picture of the competition and how to differentiate yourself from them.
Finally, franchisees enjoy the benefit of strength in numbers. You’ll gain from economics of scale in buying materials, supplies and services, such as advertising, as well as in negotiating for locations and lease terms. By comparison, independent operators have to negotiate on their own, usually getting less favorable terms. Some suppliers won’t deal with new businesses or will reject your business because your account isn’t big enough.