The world of franchising holds enormous potential for current and prospective business owners, but you need a full understanding of the opportunities in front of you if you’re to succeed. Franchise consultants can help you build up a lucrative business - but what is a franchise consultant and what exactly do they do?
Whether you’re a franchisee or a franchisor - or if you’ve only just started considering the idea of joining the franchising world - hiring a franchise consultant could be a wise move. They will have clocked up years of experience in the industry and understand the complications and possibilities involved in franchise investment journeys.
A good franchise consultant won't just lead you through a forest of bureaucracy. They’ll make sure you have the knowledge and tools to make the right choices and find success in the franchise industry.
Why do you need a franchise consultant?
Independent advisors can charge high fees and if you’re already dedicated to investing in business growth, you’ll be preparing to make a significant financial payment. Spending money on professional advice as well as all your other outgoings might seem like a potentially unnecessary step. So, your first question might be: Why do I need a franchise consultant?
Here are a few reasons why we believe franchise consultants are worth the money they can charge:
- Although franchises usually operate ethically and transparently, it’s always a good idea to get someone to review the investment documentation with you. However much you spend hiring a franchise consultant, you’ll almost certainly be putting more towards your business investment, and you don’t want to waste your money.
- If you’re considering franchising your business, you’ll need to make sure it’s ‘franchiseable’. A franchise consultant can take you through the franchising process and warn you in advance if they don’t think you have a viable plan. It’s best to know early on, so you have time to make changes or alter your approach.
- As franchising grows increasingly popular across the UK, systems are developing and becoming more and more complex. A franchise consultant can help you understand your responsibilities and flag up potential opportunities as you build up your business.
What is a franchise consultant?
There are two main types of franchise consultant:
- Consultants who work on commission - Often, consultants with commission-based services work on behalf of a franchise. Companies hire people to go out and find suitable investors to help grow their brand. As the consultant will want to earn their commission, they’ll have the franchise’s best interests in mind and cannot be completely impartial.
- Consultants who charge a flat fee - The benefit of consulting a professional who has a fixed pricing structure is knowing they’re unlikely to be working with particular franchises and trying to find new investors for them. Once they have their fee, there’s no reason for them to provide anything other than impartial advice. Usually, they’re dedicated to the success of their clients and won’t recommend franchises - or franchising - if they don’t think it’s the right thing to do.
Of course, although consultants who work on commission will be dedicated to securing investments, their franchise won’t value their services for long if they put forward unsuitable candidates. So, using a commission-based service can still be helpful for prospective investors.
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What does a franchise consultant do?
In practice, a franchise consultant can help with almost every aspect of the franchise world, but here are some of the main tasks they complete:
- Assess whether a business is ‘franchisable’
- Help franchisors expand their businesses by reviewing and writing up franchise documents and establishing franchisee and employee training protocol
- Help prospective investors work out which franchise opportunity is best for them, and whether they’re well-suited to carrying out customer-based roles or hiring a team and delegating tasks
- Help those who are close to launching their franchise unit uncover any issues with their plan
- Help entrepreneurs work out whether they are well-suited to building a large business network or focussing on a smaller project
- Guide prospective franchisees through the set-up process and help them avoid nasty surprises further down the line
- Suggest ways business owners could tweak their approach to allow for higher levels of productivity, profitability and job satisfaction
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How to find a franchise consultant
Here are just three of the UK’s leading franchise consultancy firms:
- The Franchise Company - This company was established in 1991 and specialises in franchise consultancy. The successful firm has now helped more than 200 organisations from a range of different sectors with their UK expansion plans.
- Accentiá - This franchise development and consultancy company has offices in Manchester, Birmingham, London, Northampton, Edinburgh and Crawley. With a wealth of experience in the industry, Accentiá helps businesses of all shapes and sizes use franchising to expand into new national and international markets.
- Lime Licensing Group - The team at Lime have been behind some of the UK’s most successful franchises. So far, the business has designed over 75 franchise models and generated around £50 million in royalties for its clients. It also has almost 30,000 potential franchisees on its books.
If you’re looking for a franchise consultant, you can also do some research to find independent advisors who are highly rated online.
Running a franchise business
Whether you’re a franchisor, a franchisee or still considering your options, Point Franchise has lots of handy resources to help you achieve your goals. Our daily business guides cover everything from researching investment opportunities and attending industry events to the latest trends and entrepreneur success stories.
View our most recently published articles or type a topic into the search box to find relevant information. You can also read the latest news stories from our network of growing franchises right here at Point Franchise.
To see which businesses are currently on the lookout for new investors, use the menu to browse franchises by region, investment cost or sector.
Alice Tuffery, Point Franchise ©