Unlike franchise consultants who help buyers choose among various franchise
opportunities, those who consult on turning a business into a franchise
opportunity “should be” concerned with “feasibility”
and the steps involved with creating a new organization, namely a new
franchising organization. To franchise properly, the owner must give
careful consideration to numerous issues that will impact them both
personally and professionally, and the franchise consultant used to
assist in this process must be interested in “people” not
just “franchised businesses”. And, therein lies the real
rub. Franchising, if approached correctly, is ultimately about people
and relationships, but unfortunately, most people in business (and yes,
even those in the business of being franchise consultants) are there
for the money and do not put relationships first. Choose a franchise
consultant who puts people first, and be sure to “test”
this through references. Talking a good game and actually playing a
good game can be two entirely different matters.
In addition to actually caring about the “people” side of franchising, good franchise consultants must demonstrate the following skills and traits:
· Be knowledgeable of franchise law and the documents required under federal and certain state regulations (namely, the UFOC – Uniform Franchise Offering Circular – and the Franchise Agreement)
· Understand and conduct true “franchise feasibility”
· Understand organizational design and development
· Understand the financial model of the core business and the financial model of the franchise company
· Understand fees structure, marketing, training, support and relationship building
· And of course, be a capable mentor and teacher
Of course there are other important issues, but these are critical and fundamental qualities in a franchise consultant who builds new franchise organizations. A franchisor’s success begins with choosing a franchise consultant who not only understands and assists with the entire franchising process, but one who also has a track record of developing long–term client mentoring relationships.
Franchising a successful business can be an excellent means of expansion if certain elements are in place and the ownership has the personality and desire to train and assist others with employing the concept. Of course there are other means of growing a business chain, but franchising a business continues to be among the most popular vehicles in today’s economy.
Dave Savino, president of a new hot-dog franchise, Perfectly Frank, had this to say:
into some companies that seemed to only be after my money. Then I found Nick Bibby
with the Bibby Group and things changed. He actually took the time to talk to me on
several different occasions and get to know me. What impressed me most is that he did
this without even asking for money. I would encourage anyone looking to become a
franchisor to do their due diligence and choose a franchise consultant who takes a true
interest in you.”
Franchising a business is not a do-it-yourself project.
Choose a franchise
consultant who demonstrates commitment to the relationship. How will
you know? It’s
easy. First use your power of investigation, and second, listen with
your heart as well as
your ears. You’ll know if it’s about “selling you”
on promises of great future success, or if
it’s really a concern for YOU.
Nick Bibby is a franchise consultant and principal of
the Bibby Group
