Franchise Consultants & Brokers
- And Why Dummies Don't Use Them
The franchise industry is vast, confusing and flat out
overwhelming at times, especially if you are on your first
franchise or business venture. Do you qualify? Is it available
in your area? How fast are they growing? The list goes
on. While a consultant won't represent or have knowledge
of every franchise out there, most good ones will be very
savvy on the industry in general and represent anywhere
from a dozen to hundreds of franchises.
The Franchises For Dummies book answers, "Absolutely
Not" to the question of, "should I work with
a franchise broker or consultant". I've read "Franchises
for Dummies" and will say - base your knowledge on
that read and you may be just that - a franchise dummy.
Read everything, seek everyone's advice, but do yourself
a favor and don't rely on the For Dummies series alone
on this one. This is business, not checkers, web page
building, gardening nor puppy training. If you are considering
supporting yourself and or your family and a "For
Dummies" book is the extent of your research you
may want to reconsider things. Not to bash that book too
badly, but please don't limit your education to just it.
Just about any semi-seasoned franchise broker or consultant
would be happy to offer a "franchising 101"
telephone conversation and offer more valuable and current
information than the Dummies book does.
The for Dummies book explains, " franchise consultants
are paid by the franchises and therefore will only recommend
the franchises they represent."..... Well so what?
So does your financial planner, your banker, the man that
works in the hardware store, the girl at Best Buy - do
you steer clear of that stuff just because they may only
suggest what's in the store? No one hard sells franchises
these days. The industry is too tightly regulated for
that. Brokers simply listen to your experience, goals,
ambitions, etc. and suggest a few franchises that are
in his or her portfolio. If they look interesting he gets
you more information and if they don't - oh well. It comes
with the desk.
When exploring franchise opportunities keep an open mind.
Consider all sorts of brands and business models. A large
majority of franchisees end up buying franchises they
never knew existed or was available in their market and
those suggestions come from people like franchise brokers.
If a broker calls - take a minute and talk to them. If
you're not interested in their ideas say no thanks and
move on.
Franchise brokers and consultants do promote franchising
and for the most part their set list of franchises, but
don't think that by talking to a broker you are committed
to his or her list of franchises, or even any single broker.
It's not like real estate where you enter a contract with
your broker and cannot speak to anyone else for 6 months
without his representation. A good broker will answer
your questions, make some suggestions, and certainly ask
to show you a few of the franchises he represents. If
you find any of his franchises interesting, he's going
to offer to introduce you to that particular franchise.
Pretty simple and certainly painless.
Franchise brokers and consultants are typically paid
by the franchisor, based on commissions of franchises
sold, so of course they will offer to show you their franchises
- but keep in mind, that broker cannot sell you a franchise
even if he wanted to. The franchise has to sell you the
franchise. Also, if a broker plans on being in the industry
for any length of time, it is equally important to introduce
the right candidates as it is the right franchises. The
last thing a franchise wants is a broker introducing unqualified,
non-interested prospects. Point being there, to contradict
the dummies book a bit, success in franchise consulting
and brokerage has little, if anything to do with "selling
someone" and everything to do with identifying and
matching the right entrepreneur with the right opportunity.
A good franchise consultant can offer excellent industry
insight, save you hours of research time - and who knows
maybe even help get you on your path to prosperity. Even
if you choose to go it alone without the use of brokers
or consultants, please do yourself a favor and read more
than just the dummies book.
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