How to Choose the Right Franchise Consultant

There are two important questions people should ask themselves about becoming an entrepreneur. One is whether starting a business is right for them. The concept can offer advantages over a corporate job, such as autonomy, flexibility, and earnings based on how hard they’re willing to work. The second big question is how they find the best business model for them.

For some people, the answer is to work with a consultant. A franchise consultant’s job is to help someone determine whether business ownership is the right fit and then find a good franchise opportunity.

Here are some questions people should ask before choosing a franchise consultant:

How does a consultant get paid? Some consultants charge retainers, but most do not. They are like realtors: they work for free until the client decides to sign with a franchisor. That’s a big part of the incentive to only present opportunities that are a good fit and positioned for success. They don’t waste time on anything that doesn’t meet that criterion.

Franchisors pay consultants from their marketing budgets when a new franchisee signs. They pay to find a motivated owner who is the right fit for their brand and their business model. They also increase their geographic reach by having consultants across the country. Trying to find and sort through hundreds of prospects is hard work. Franchise consultants save them time and resources by presenting only the serious owners and the right fit for them.

What is a consultant’s experience? The franchise consulting market gets more saturated by the year. Identifying someone with an extended track record of success immediately helps narrow the field and provides peace of mind that they’re hitching their wagon to a proven, trusted source.

Experienced consultants can help organize and process options. They’ll help buyers understand what it will take to succeed in a particular franchise and identify blind spots that a less seasoned professional may overlook. It can help to ask a consultant to share success stories from franchisees whose skills and situations mirror the buyer's.

Here’s a good definition of success for a consultant: At least 90 percent of their clients who became franchisees have built a successful franchise business. Many of them will go on to grow the business and sell it later at a profit when they are ready to retire. In other words, they define their success by the buyer’s success.

What is a consultant’s history with business ownership? A potential franchisee should want their consultant to understand both parts of their career path: working for an organization and owning a business. They should have been through some of the same experiences and understand what it takes to succeed in both environments. They can speak from experience about the pros and cons of working for someone else and becoming their own boss.

What is a consultant’s process? This is ultimately how to determine if this is the right consultant. Not only should they have a well-defined process that stays focused on the buyer’s needs and criteria, but they should also be able to communicate it clearly. Look for personality traits that will make them a good fit, such as patience, organization, focus, and the ability to pay attention to and explain details.

A franchise candidate should look for someone who sees the buyer as a whole person, and not just a fee. They should be independent enough to challenge assumptions but also give trusted advice.

A prime example is if they think an opportunity the buyer is considering isn’t the right fit, they’ll say something. A good franchise consultant would rather lose a fee than have an unfulfilled client unhappy in the company they chose.

Choosing a franchise is a big decision, and having the right consultant can make all the difference. Rather than try to sell a particular brand, consultants are there to help the buyer discover whether business ownership fits within their life path. The right partnership can provide the necessary confidence to make that informed choice.

Marshall Reddy is a franchise consultant and contributor at WhatTheFranchise.com.