Franchise business has shown that building brand and business expansion is easier and also a bit risky if you do not give proper attention and time.
It has the ability to give you a huge cash flow to your business. India is a country of individuals that makes their creative earning ideas to the business.
With the market’s ups and downs and uncertainty affecting every business, many people are looking for a sense of stability.
For, would-be entrepreneurs, this could mean choosing a franchise rather than beginning their own business, because a franchise comes with an established track record and a built-in support structure.
Others, fed up with losing money in the stock market, want to invest their retirement funds in a business or franchise.
Furthermore, there are small business owners who are interested in franchising–that is, turning their existing small firm into a franchise and becoming franchisors themselves.
Many will enlist the help of franchise advisors to accomplish this. Someone considering buying a franchise may be aware of the roles of the franchisor and franchisee, but while studying franchises, they will almost certainly come across a phrase that they are unfamiliar with: franchise consultant.
So, what exactly is the role of a franchise consultant? Whether they work with franchisees or franchisors determines this.
Franchise consultants can help successful small business owners turn their existing business into a franchise by drafting the initial franchise agreements, operations manuals, and marketing materials, as well as assisting the franchise in growing once it is up and running by providing training and support.
Again, some franchise consultants are paid on a fee-only basis, while others are paid a portion of each franchise sold by the franchisor.
Fee-only franchise consultants may be preferred by potential franchisors who can afford an upfront payment because the cost will be predictable.
Those who are unable or unwilling to pay the franchise consultant in advance may opt for a commission-based franchise consultant.
This strategy may appeal to inexperienced franchisors since it involves the franchise consultant sharing some of the risks.
A franchise consultant serves as a sort of guidance counselor for potential franchisees by assisting them in discovering and purchasing a franchise as well as learning about the franchise industry.
The franchise consultant can assist the potential franchisee in determining what would be the best franchise buy for them depending on their budget, whether they want to manage the franchise or operate it full-time, and what their strongest strengths and interests are. They can discover flaws in a franchisor’s offering or business plan thanks to their experience.
Their effectiveness, on the other hand, maybe influenced by how they are compensated. Someone who gets a commission is a franchise consultant who offers their skills to a potential franchisee for free.
This franchise consultant will need to sell franchises in order to make a living; as a result, they may try to persuade a potential franchisee to buy a franchise that isn’t the greatest value because they need to make a sale in order to make money.
Franchise consultants that are paid on commission may still provide excellent advice and insight and assist a potential franchisee in making a sensible investment, but potential franchisees should exercise caution and ensure that their due diligence is thorough.
After all, while the approach may work for great franchisors that use [franchise consultants with whom they’ve developed a relationship] to find the best franchisees for their programme, it may be incredibly unfair for novice prospects who are unfamiliar with the dynamics.
Franchise advisors that work on a fee-only basis are also available to potential franchisees. They wouldn’t fall into the trap of pushing the wrong franchise to make a sale because they get paid upfront.
However, because they are not free, potential franchisees must be serious about franchising or be willing to forfeit the price if they decide franchising is not for them.
It is nearly hard to perform a respectable job franchising a business without the assistance of a qualified franchise consultant and a franchise attorney.
There are some excellent franchise consultants out there, but the business owner must be careful not to be sold on the idea of franchising their company.
|Are you an
Entrepreneur or Startup?
Do you have a Success Story to Share?
SugerMint would like to share your success story.
We cover entrepreneur Stories, Startup News, Women entrepreneur stories, and Startup stories
Whatever the category you choose to have a franchise business there is an important role of a franchise consultant. The chain between franchisee and franchisor for better business growth.