A Franchise consultant also known as a franchise broker is a person that works with a Franchisee and a Franchisor to workout a franchise deal. A franchise in the business or the entrepreneurial world has to do with an agreement to issue a business rights and trademarks to another business to make profits in exchange for a start up license fee and an annual franchise renewal fee.
A Franchisor is the business or person giving out the franchise license, while the Franchisee is an entrepreneur or business owner who makes use of another business’s franchise and trademark to do business. The main duty of a franchise consultant is to help a Franchisee look for the best franchise that invest in and his duty to a Franchisor is help him look for Franchisee to invest in his business trademark.
You can opt to start a franchise consulting business. Some of the duties of A Franchise Consultant include; drawing up franchise agreement for a Franchisor with the help of a lawyer. Helping a Franchisee find a franchise that matches his requirements and business needs, and also carry out a proper research on the franchise to ensure the franchise is a liable and profitable. Other roles include advisory roles, as well as a marketer for a franchisor.
Now here are ways to start your own franchise consultancy business.
Becoming a Certified Franchise Consultant – A Beginner’s Guide
Since there is no special training required to become a franchise consultant, the first step to take to become a franchise consultant is to write out a well defined consulting business plan. What are the capital requirements you need to start a franchise consultancy business? How do you intend getting the capital?
What will your business structure look like; that is, will you work as an affiliate for franchisors or will you be an independent franchise consultant? Where will the business located; that is State or City you intend setting up the business? How much do you intend making in a year, and how will you make the business? All these should form the basis of your business plan.
2. Make a List of All Franchise Business
The next step is to carry out research and compile a list of all business that have a franchise offer. It may entail you meeting business owners in your location; ask about the basic terms of the franchise. After that, carry out a thorough research on the company on your own, because you owe your clients (franchisee) the duty of ensuring that any franchise deal they enter into is a profitable one.
3. Get a Location
You can run this business as a home business, but to increase your business credibility. You need to get a location for your business. An office space with just basic office requirements is enough. It will serve as a place where you hold business meetings with both the franchisor and franchisee. It will be an added advantage if the business is located in a city with lots of business owners and on the business part of the city.
The success of your business depends on the number of clients you can get to sign franchise deals. You need to have a sales skill to be able to convince clients to enter franchise deals. This step may involve setting up business meetings with potential clients to discuss available franchise deals that will make the business requirements. Some franchisee may actually come to you, to recommend the good franchise for them.
Another way to increase your chances of getting franchisee is by joining associations like Franchise Brokers Association (FBA) and also to network with over franchise consultants. You can also attend business conferences and seminars and share complimentary cards to new acquaintances you make; you can get few referrals for your services through networking.
6. Be Sure to Earn much
Franchise consultants that work as affiliates for franchise businesses earn money through commission. They are paid an agreed amount for every franchise deal that pulls through. Also, they make money from franchisee by helping to connect them with good franchise companies. Most franchisees prefer to work with independent consultants than affiliate consultants. Some franchise consultants make up to $20,000 for every franchise deal that is signed.
Finally, Remember to get all necessary registrations that will enable you run your business in your State like; getting a Tax Identification Number TIN, registering your business to run as a legal entity will also increase your business credibility and also to take up a business insurance to cover your business from any liability issue from your client.