Michigan Small Business & Technology Development Center

December 2005

Using a Franchise Consultant
Optimize Your Chances for Business Success

By Gregg Halberstadt, President, Franchise Consultants, Inc.

THE PRIMARY VALUE

Estimates on available franchises vary, but there are literally thousands, and new ones enter the market every day. Entrepreneurs face a dizzying array of opportunities – even if they have a pretty good idea of what kind of business they want.

The franchises also face a difficult task. Popular ones receive hundreds of requests for information every week – far too many to process. They don’t want to be unresponsive, but they are ill-prepared to field every request. Many franchises out-sourced the prequalification process to consultants to ensure that they are working with the best-qualified and most interested candidates.

One of the most valuable services a franchise consultant provides is raising your visibility and credibility. A franchise consultant understands what type of candidate franchises seek and is duty-bound to provide the best ones. Allowing a consultant to introduce you to franchises ensures that the franchises view you as prequalified. In essence, you are moved to the front of the line.

Franchise consultants are paid by the companies they represent. Thus, there is never a cost for their consulting, research and recommendations. Using a franchise consultant should never increase the cost of investing in a franchise. While other broker models have a built-in cost – such as with real estate, mortgages and traditional business brokers – using a franchise consultant is truly a zero-cost option. You pay the same as if you did all the research and handled all the communications yourself.

ADDITIONAL BENEFITS

You have increased credibility at no cost, but it doesn’t end there. There are other services you can and should expect from a franchise consultant. He or she should:

WHAT YOU CAN DO

As with any resource, being an educated consumer will help you get optimal benefits from your franchise consultant. It’s important to understand that the consultant serves two masters -- you and the franchise – and he can only be successful if he does a good job for both. You can optimize the value if you do the following:

DISCLOSE

The consultant’s commitment to you is to present top-notch franchises that match your needs and have: successful track records; excellent training and support; and an opportunity for equity growth. This is possible because the franchises he represents have disclosed significant details about their opportunities, and the consultant has the best and most up-to-date details.

His commitment to the franchise(s) is to present only the most qualified and interested franchisee candidates. These companies have disclosed a significant amount of information because they know that, by doing so, it enables the consultant to do the best possible job for them.

Therefore, the more information you can provide the consultant, the better the chances that he will do the best possible job to represent you. This should include all details concerning your current business, employment, financial status, family commitments and time constraints. The franchise consultant will treat all your information with the strictest confidence and only will provide it to franchises in which you have expressed interest.

SHARE THE OBJECTIVE

Also understand that while the consultant should be very knowledgeable on each franchise in his portfolio, he cannot, due to sheer volume, be an expert on any one company. His objective is to connect you with franchises in which you are interested. Don’t begin the process unless this is also your objective. Be ready to turn what may have been your life-long dream into a short-term reality. Speaking directly with the franchises is the best way to get your questions answered and should enable you – through a short conversation – to validate or discount each opportunity.

KEEP AN OPEN MIND

One of the most valuable services a franchise consultant can provide is to make you aware of opportunities you may not have thought of or found on your own. The consultant should provide one or more concepts that meet your original goals, but he also may present horizon-expanding opportunities that offer both significant successes through new and exciting avenues. Thus, even if you begin with a very specific concept, keep an open mind.

REMEMBER WHAT THE C STANDS FOR

The C stands for consultant, not counselor. A franchise consultant can do many things for you, but convincing you that running your own business is the right thing to do is not one of them. He can and should help you understand that franchising offers the greatest chance for your success through the least amount of risk (based on actual statistics), but only you can determine if the time is right. He can’t and shouldn’t try to convince you of that or accelerate the process beyond your comfort level. Decide that you are ready to own a business, even if you have no idea what that business should be, and then contact a consultant.

If you are truly serious about owning your own business, or expanding your current business portfolio, there is no reason not to use a franchise consultant. The consultant will do everything possible to meet your objectives with complete confidentiality at no cost to you.

For further information or questions please contact Franchise Consultants, Inc. at 248-722-9258 or www.franchiseconsultantsinc.com