How do you find a reputable franchise consultant?

Finding a reputable franchise consultant involves a few key steps: Research and Referrals: Ask for recommendations from franchisees, franchisors, and business owners. Check industry associations like the IFA. Check Credentials: Investigate the consultant's background, experience, and specialization in your franchise type. Interview Candidates: Discuss their process, fees, and services. Ask detailed questions. Verify References: Follow up with past clients and check online reviews. Evaluate Network: Look for strong industry connections and a reliable network of legal and financial advisors. Assess Compatibility: Ensure their approach and communication style suit your needs. Choose someone transparent and ethical, with a clear fee structure.

A franchise consultant's depth of experience in guiding prospective business owners is important to consider. Look for franchise consultants who have worked with clients in both growth years and recessions. A broker's own experience in the management of franchise systems can be quite useful for prospective franchise owners looking for insight. Some states, like Washington and New York, require a franchise broker license. In those states, ask the consultant to share their current license.

"If you are thinking about buying a franchise, you might want to hire a franchise consultant to help you navigate the process." Unfortunately, you cannot hire a franchise consultant. The entire business of 3rd party franchise recruiting, which franchise consultants and franchise brokers are a part of, is a commission only industry. There is no such thing as a 3rd party retained franchise consultant who is paid a retainer whether or not a franchise is sold. There are, however, a few franchise sales outsource companies that will sell for a mix of retainer and commission. But, these companies have franchisors and not individuals as clients.

I agree, but also add that Ownership Experience – Real-world experience matters. Knowing the franchise consultant has walked in your shoes as a business owner, hired & managed teams and used personal savings to invest in a business. Also the degree of franchise industry experience can make a difference in their ability to match you to the right franchise business. Does the franchise consultant have the experience to coach you through the education and matching process, or are they simply a ‘salesperson’?

Past success stories is the best way to vet potential franchise consultants or brokers in my opinion. If they cannot show demonstrable results for other franchise businesses that are both relevant & recent why would you want to work with them?

Like a resume, finding a reference to support your talent is not difficult. Find other ways in your due diligence process to determine if you found the right business partner.

A franchise consultant who lives in the same region as their clients adds much value in helping clients build a network of reputable service providers offering guidance with bookkeeping and accounting, legal issues, commercial real estate, employee benefits and regulatory issues.

Before looking at fee structures checking track record, experience within your sector & how they align with your values is crucial when comparing different options.

Narrow your search to three potential candidates. Prepare 10 questions to ask each candidate. Compare answers and then think about for a week. Then, schedule a final phone call with the one, or maybe all three candidates, to ask a few more questions; character-based.

So important. People that enjoy their work are usually more successful. When consulting it is vital to have a strong relationship. If a consultant shares your values & has a keen interest in your field they are likely to be more successful.

Agree, does the consultant understand YOU? Do they propose their top few most popular businesses of that month or do they have a matchmaking system to framework your greatest needs of business ownership? Why You? Why Now? Your end game? .... the journey should produce a presentation of a handful of well-qualified brands that match your background, interests, and business style. The journey will tap into their extensive referral base - financing, legal ... to find the right biz to invest in and the right management structure for you > 1) owner-operator 2) semi-absentee with full-time manager, or 3) fully managed by franchisor).

Someone that is knowledgeable about your business, passionate about their role as consultants and know what you want on ROI.

Any consultant that has been successful for his clients is more likely to be turning potential new ones away rather than be pushy to close the deal. This is a massive red flag.

In my experience, the decision to become a business owner can be scary and overwhelming. Whether you want to start as a semi-absentee basis while keeping your day job, or leave your full-time gig completely. The pitfalls of choosing the wrong franchise company are huge- emotionally and financially! Pitfalls can result from either a bad industry match for you or simply a poor-quality franchise company choice. Pitfalls may result not only from lack of a coach/advisor to assist you along the way, but also from working with a non-qualified franchise consultant. Learning how to qualify a potential franchise consultant is essential when searching for a successful business match.

Great article and so true in many ways. I also would contribute that a great consultant has intimate knowledge of the franchisee life cycle, education on exit strategies, real estate, employees and candidly a life long mentor and not simply a transaction relationship. Walk the walk if you will…. Thanks for sharing Ralph Yarusso, CFE,CFC,

Red Flags: 1) Monthly Retainer; 2) Upfront Fee; or 3) High Commission Performance-based is best with a focus on reaching quarterly goals.