Over the last 12 months, I spoke to approximately 2900 potential franchise seekers and the question I am frequently asked is, “Why should I use your services? After all, I can find my own franchise.”
Anyone can find a business but going through due diligence is a process that takes time, and you need tremendous skills to put all the pieces together, before any purchase is made.
Here are my top three reasons why you should carefully consider using a reputable Franchise Consultant:
There’s no cost to you
All the consultant’s fees are paid by the franchisors. The franchise fee does not change if you use the services of a consultant or not. It is extremely beneficial if you use our firm because we are not partial to any opportunity. We use a set of criteria that helps us evaluate if the opportunity is viable for each client. If the information does not meet our requirements, we don’t recommend the brand. Once we identify a brand that meets our key performance indicators, and the opportunity fits within the client’s budget, we will walk you through the due diligence process that will ensure that you are making the correct decision. Our firm schedules all the franchise calls, provides analytical tools throughout the process and we will be on every call with you. In the majority of instances, we will spend between 50-100 hours before a purchase is made.
You save time
Most candidates think that they can get all their information online, however, a valuable consultant, will have a lot of the information you are seeking. This saves a candidate a lot of time requesting packets of information and getting inundated with numerous calls from franchisors. Typically, if you are not working with a Franchise Consultant, most franchisors will have you complete a Request for Consideration. These forms are long and time consuming and are required to be completed before any information is sent out to the candidate. However, if you work with a Franchise Consultant, these steps are often eliminated because you will be pre-qualified first by the firm. Once we know what brand(s) you are interested in looking at, we will request the information you need and send it to you within minutes of the first telephone conversation.
You save money
Many times a client is near the end of their decision and they want to confirm if they have made a good decision and they contact our firm. Once I review the Franchise Disclosure Document, sometimes I don’t feel comfortable with the Key Performance Indicators and I discuss this with the candidate. There have been many instances where the candidate was so close to signing, only to realize that they did not complete all the due diligence required to make a prudent buying decision.
So next time you read a blog written by a person who has never placed a candidate in any franchise, carefully consider their credentials. After placing hundreds of individuals in business, it really pays to have a third party with you throughout the process.