Benefits of a Franchise Consultant

In Short

• Franchise consultants assess your business’s potential to franchise, looking at financial track records, demand, and replicability.

• They provide expert guidance on the entire franchising process, including legal, operational, and strategic aspects.

• Consultants help select quality franchisees and assist with developing necessary documents, like an Operations Manual.

Tips for Businesses

Before deciding to franchise your business, speak to a franchise consultant. They can help you assess whether franchising is right for you, evaluate your business’s viability, and guide you through the complex process. For franchisees, a consultant can help identify suitable opportunities and ensure you fully understand franchise agreements.

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Table of Contents

• What is a Franchise Consultant? 
• Franchisor Benefits
• Franchisee Benefits
• Key Takeaways
• Frequently Asked Questions 

Franchising is a great way to expand your business operations. However, not every business is suited to the franchising process. The best way to determine if your business is suitable for franchising is to speak to an expert, such as a franchise consultant. This article will examine what franchise consultants do and how they may add value for franchisors and franchisees.

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What is a Franchise Consultant? 

A franchise consultant is an expert in all things franchising. As a starting point, a franchise consultant uses their expertise to assess the feasibility of you being a franchisor. This process involves assessing: 

• your financial track record;
• demand for your goods or services;
• ability to replicate your business model; and
• how profitable your business would be as a franchise for you and prospective franchisees. 

These consultants are helpful when deciding if you should franchise. However, they can also provide information and expert advice on the entire franchise process beyond the launch of your franchise. Guidance from an expert with significant industry experience can make all the difference when taking a leap as huge as franchising. 

Franchisor Benefits

Specialised Knowledge 

One of the main benefits of franchise consultants for prospective franchisors is the ability to leverage their specialised knowledge. One mistake business owners make is assuming that a successful business concept will automatically translate to a successful franchise. This is not necessarily the case. Franchising is a unique business model that involves various legal, operational and strategic processes. Having a franchise consultant help navigate these challenges will ensure you have the practical advice you need to make informed decisions. 

Tailored Advice 

A consultant has enough experience and industry know-how to assess the potential of your franchise objectively. A good franchise consultant will ensure that you do not rush into the franchising process before conducting significant research and ensuring your viability as a franchise. This requires you to assess your goals, resources and limitations carefully.

Operational Considerations

A franchise consultant is particularly helpful for developing the comprehensive documents needed to operate your franchise. This includes knowing exactly what policies and procedures need to be outlined in an Operations Manual. Such a manual needs to work well in practice. As such, an experienced franchise consultant will ensure you can develop a comprehensive and feasible Operations Manual and provide you with the guidance needed to put it into practice.

Assist with Franchisee Selection 

Finally, a franchise consultant can assist you with selecting quality franchisees. This involves helping you to package an appealing franchise opportunity and attract franchisees whose goals match yours. Having the right franchisees is critical for the long-term success of your franchise and the reputation of your business, making this an important process.

Franchisee Benefits

Some ways that prospective franchisees can benefit from franchise consultants are outlined below.

Determine if Owning a Franchise is Suitable 

Firstly, a franchise consultant can assist prospective franchisees in determining if they are suited to owning a franchise. This involves explaining the practical realities of owning a franchise, from the costs associated with the day-to-day requirements of running a business. This ensures a potential franchisee can make an informed decision about the type of franchise they invest in. 

Search For Franchise Opportunities

Further, a consultant can help prospective franchisees look through all available opportunities. They will take into account important information to help a prospective franchisee make their decision, including:

• financial capability;
• qualifications;
• prior work history; and 
• goals and ambitions. 

Assess An Opportunity 

Finally, a consultant can help a potential franchisee assess an opportunity. This is particularly important if the potential franchisee has limited experience in the field and needs assistance assessing a franchise agreement. An experienced consultant will have seen hundreds of franchisee agreements and know exactly what terms should be avoided. Further, a franchise consultant will still be able to help a potential franchisee by determining if any problems with their business plan will impact the profitability of an opportunity. 

Key Takeaways

The best way to determine if your business is suitable for franchising is to speak to an expert, such as a franchise consultant. A franchise consultant can assist you by:

• lending their specialised knowledge to determine if you should franchise your business;
• assess your potential as a franchisor;
• develop your franchise’s infrastructure;
• helping you select franchisees. 

If you need assistance understanding the franchising process, our experienced franchise lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 0800 005 570 or visit our membership page.

Frequently Asked Questions