Putting up your own business isn’t easy; you have to study every detail from your smallest piece of raw material up to your target market. But if you do not have enough time to do some feasibility studies, franchising is the solution for you. When you franchise, you will have a business that name has already been established, what you got to do at least is to hire someone who will run your store. Franchising has been rampant because it won’t use much of the time you have to use in putting your own line. There are different companies that allow it for their name to be proliferated and as well as the income would be generated without the cost of managing number of stores at a time. However if you are still unsure of the franchise you will get, you ought to hire franchise consultants. Franchise consultancy has been defined as a fast rising professional industry devised for investors, businessmen and economist to be able to assess businesses and its capability to be marketed.
Franchise consultants like any other consultant does the same thing, to advise the client on what business he or she should go to. Franchise consultants often say that what they will give you is free of charge, no matter how they will advise you and will study about it, it will be free. Actually, consulting is free in your part but no one would be that of a Samaritan where he puts every bit of knowledge he has for free – of course the consultant will get commission as high as 40% from the franchise company immediately after the deal is done. Nevertheless one should be aware that there are franchise consultants who will refer you to a franchisor that will give him the biggest commission. Better yet try to read everything in his research or papers so that you will not be wasting huge amount of money. Being a franchise consultant is comparable to a real estate agent, they both are middleman to a buyer and seller, and they also both get commission from every done deal. The only difference you can see is a franchise consultant should be more equipped with data regarding what business he is recommending to his client. He should be aware of the system in that kind of business and be aware of the basics in that kind of business.
Usually a franchise consultant works with franchise-knowledgeable attorney and franchise-knowledgeable accountant. The two professionals mentioned above are very fundamental when it comes to decision making of the client. The franchise knowledgeable-attorney would also study the contract like the consultant but he would be focusing more on the legal ground, like what could be the grounds for violation both on the side of the franchisor and franchisee. The franchise-knowledgeable accountant would focus more on the money matters specifically the checks and balances of the company. He should be able to present to the franchisee some financial predictions from the checks and balances together with the feasibility studies of the franchise consultant.
There are benefits one could get from franchise consultants, here are as follows: 1. The franchise consultant will teach the franchisee on how to study the trends of our economy – this is very important because one should be aware when to get how much stocks; 2. He will as well teach the franchisee to understand the franchise agreement contract – very essential because if the franchisee will violate any rules within the contract there is a big possibility that the franchisee will be sued and instead of gaining money, he might lose more; 3. He will teach you marketing strategies for your new business – very vital for a franchisee to know, because if he would not be aware of such his business would flunk, he should know how to market the products he has and eventually create a strategy of his own to earn more money.
At the end of the day, franchise consultants serve two masters. He should help the franchisee look for a suitable business based on the specific budget, location and manpower. He should also help the franchisor by means of building a high-end brand name for every franchise he carries and as well as making the franchise more franchise-able by studying more into it.