Franchise Consultants and Franchise Information

The most widely sought out “franchise consultants” are those focused on franchise buyers, and the reason is quite simple. There are more people in the area of “potential franchise ownership” than in the other two service categories of franchise consultants combined. Franchise buyers, especially first time franchise buyers, are wise to enlist the help and input of seasoned, knowledgeable franchise consultants who knows the right questions to ask, and more importantly, the potential pitfalls and hazards of a franchise opportunity that may not be obvious to the buyer. And even if a buyer is not new to franchising, a cool, detached, extra pair of eyes can often temper the emotions of a purchaser. It is just good business. Hiring franchise consultants when purchasing a franchise is a wise choice.

If you are thinking about buying a franchise, your franchise consultant should be someone capable of helping you discover, investigate, and decide between various franchise opportunities. And of critical importance is that your franchise consultant works for you, the buyer, and not a sales agent for franchisors willing to pay a commission to the consultant if you buy a particular franchise. If you are saying to yourself “Of course they should be working for the buyer if they’re a consultant”, then check yourself for a moment and look at the facts. Many people who bill themselves as “franchise consultants” for prospective franchise buyers earn their living through commissions if you BUY a franchise that they represent as a broker. In most cases these franchise consultants offer “free franchise consulting” services, and even though it is not necessarily hidden that the consultant will be paid by the opportunity seller, that fact is not readily highlighted in disclosure. It’s a fact that can arise as time progresses. In this case, the franchise consultant is definitely NOT consulting on YOUR needs alone, but focused on making a connection between you, the buyer, and a franchisor being represented before hand that will pay a commission or a referral fee. Now, is this a reason to NOT engage these “free” franchise-consulting services? No, not at all, but it is a huge barometer to understand when considering the dynamics of the relationship between these “franchise consultants”. Remain protective of your emotions if you are a potential franchise buyer.

Buying a franchise without a franchise consultant is tricky business because there is so much to investigate and so much information to digest. In fact, it can be such a monumental task that many buyers simply end up relying on the franchisor’s sales rhetoric and not even reading the pages of documents required to complete the purchase. “When can we get started?” is the common question uppermost in the buyer’s mind. There is so much to discover that the weight becomes overwhelming and the buyer, if happy with appearances of the opportunity, just goes on ahead. Unfortunately, too many surprises crop up later. Thorough investigation is the best policy, but where do you find franchise consultants focused entirely on the buyer, franchise consultants who work for a fair fee paid by the buyer, and franchise consultants who are not tied into commissions or referral fees? Here are some hints.

		Franchise Consultants: How to Choose One

	Franchise Consultants For Buying a Business
The most widely sought out “franchise consultants” are those focused on franchise buyers, and the reason is quite simple. There are more people in the area of “potential franchise ownership” than in the other two service categories of franchise consultants combined. Franchise buyers, especially first time franchise buyers, are wise to enlist the help and input of seasoned, knowledgeable franchise consultants who knows the right questions to ask, and more importantly, the potential pitfalls and hazards of a franchise opportunity that may not be obvious to the buyer. And even if a buyer is not new to franchising, a cool, detached, extra pair of eyes can often temper the emotions of a purchaser. It is just good business. Hiring franchise consultants when purchasing a franchise is a wise choice. If you are thinking about buying a franchise, your franchise consultant should be someone capable of helping you discover, investigate, and decide between various franchise opportunities. And of critical importance is that your franchise consultant works for you, the buyer, and not a sales agent for franchisors willing to pay a commission to the consultant if you buy a particular franchise. If you are saying to yourself “Of course they should be working for the buyer if they’re a consultant”, then check yourself for a moment and look at the facts. Many people who bill themselves as “franchise consultants” for prospective franchise buyers earn their living through commissions if you BUY a franchise that they represent as a broker. In most cases these franchise consultants offer “free franchise consulting” services, and even though it is not necessarily hidden that the consultant will be paid by the opportunity seller, that fact is not readily highlighted in disclosure. It’s a fact that can arise as time progresses. In this case, the franchise consultant is definitely NOT consulting on YOUR needs alone, but focused on making a connection between you, the buyer, and a franchisor being represented before hand that will pay a commission or a referral fee. Now, is this a reason to NOT engage these “free” franchise-consulting services? No, not at all, but it is a huge barometer to understand when considering the dynamics of the relationship between these “franchise consultants”. Remain protective of your emotions if you are a potential franchise buyer. Buying a franchise without a franchise consultant is tricky business because there is so much to investigate and so much information to digest. In fact, it can be such a monumental task that many buyers simply end up relying on the franchisor’s sales rhetoric and not even reading the pages of documents required to complete the purchase. “When can we get started?” is the common question uppermost in the buyer’s mind. There is so much to discover that the weight becomes overwhelming and the buyer, if happy with appearances of the opportunity, just goes on ahead. Unfortunately, too many surprises crop up later. Thorough investigation is the best policy, but where do you find franchise consultants focused entirely on the buyer, franchise consultants who work for a fair fee paid by the buyer, and franchise consultants who are not tied into commissions or referral fees? Here are some hints. 1. Attorneys who work specifically with franchise opportunities are a great resource. They will review legal documents and help you ask questions to clarify the unknowns. The UFOC (Uniform Franchise Offering Circular) is a mighty document and most franchise buyers need help in making sense of its content. 2. Franchise Consultants who focus directly on the needs of franchise buyers are another source of help. They can review the Offering Circular and Franchise Agreement and also offer guidance regarding other questions and concerns when talking to franchisors. In other words, expect a complete “franchise due diligence” service. Nick Bibby of the Bibby Group is among the franchise consultants offering franchise due diligence services for a fee. He can be found at www.BibbyGroup.com where you will also find much more on the subject of franchise consultants. 3. For the thousands of people seeking help in choosing a franchise opportunity, consider first that your franchise consultants of choice should be interested in YOU first as a client, not you as a sale. Clarify this point upfront so that you can make a more informed decision about what is best for you.