Franchise Consultants...Are They Just Taking You For a Ride?

I was curious about how a new franchisee makes a sound decision about the "right" franchise....then it hit me Franchise Consultants, possibly the wave of the future.

In my mind I viewed the idea of a franchise consultant very similar to the way I viewed a Chia Pet. It is a novel idea, but does it do what they say it will do or will they just be around forever because of the novelty and the inherent concept of "there is one born every minute!"

You are a potential franchisee and you are schlepping through the "homework" of deciding whether or not franchising is for you and after careful deliberation you decide it is. You have a momentary wave of relief because you have decided to move forward and catapult your life and career into a new direction. You feel the refreshment of the first snow of the season, or a long nap and then an overwhelming sensation washes over you....now that I am a franchisee I need a franchise! How to choose? Which one to choose? Who can help? The questions are like a conveyor belt on high. To pay a consultant or not to pay? That is the question. Whether it is nobler (or less expensive) to suffer the slings and arrows of inexperience or to be guided down the path toward enlightment.

There is no such thing as a free lunch:

Often times the "Free Services", are free to the consumer because they are paid for by the Franchisor. This is not necessarily bad, however it is a reason for extreme vigilance and cause for more homework. Since the Franchisor is paying for the consulting it is probably a case of highlighting the positives and minimizing the negatives. Do not be overwhelmed by the "great testimonials", "thousands of successful franchisees" and "continual support and training". These claims may all be true, but it is best to speak with the CEO, the trainers, and most importantly other franchisees that are where you will be a few years down the road.

Ask to speak to the HOT franchisees as well as the not so hot:

Ask questions:

Why do you feel like you are successful?

How is the support and training?

Would you recommend this opportunity to a potential franchisee?

Knowing what you know now, would you make the same decision to invest if you had it to do over again?

By asking these questions of the most successful and the barely in the game franchisees you will be able to assess whether, the successes and failure are due to attitude, training, management style, lack of training and or knowledge. Ask the same questions of the CEO and trainers. Look at the big picture and past the immediate enthusiasm and initial excitement.

Investigate Everything:

You did a lot of soul searching to decide franchising was right for you. You need to ask questions about everything. In this case of choosing a consultant paid or not knowledge is power! What does the consultant know that you don't? What is the consultant's client satisfaction rate? What is the cost? How much work will the consultant do?

Whether you choose a consultant that you pay or one that is paid by the franchisor, be certain the consultant is looking out for your best interest. If you are unclear about something ask questions. Don't forget you are about to invest a substantial amount of blood, sweat, tears and CASH; No question so go unanswered. There are a lot of ways to research both franchises and franchise consultants. Use the net, ask other franchisees in your area, consult the library, and the local book store.

Franchisors paid consultants are not necessarily better or worse the consultants paid by the potential franchisee...but let the buyer beware!