The first is subjective opinion, which is based upon the philosophy and precepts of the consultant.  It is possible that you could ask the same question of three different consultants and get three different subjective opinions.  How, then, can you evaluate the opinion of a consultant?  A relatively simple answer to these very complex questions would be a factor of the number of years the consultant has been giving opinions together with his percentage of successful outcomes.

Sucess in the context of franchising can be defined as reaching the desired objectives within the desired time frame.  Success is not always a result of return on investment or profit.  Even though the most common objective of getting into business is one of profit that is not always the case.  Many people, after careful analysis, might substitute status, prestige, physical effort, time demands or some other criteria in place of profits. If a consultant's advise results in his clients achieving their objectives, then that consultant has been successful in that particular case.

Use a consultant's philosophy to see if it is compatible with your own.  

No person can possibly go through life without making errors in judgment. That being the case, no consultant can ever claim a perfect record. 

When seeking the advice of a consultant you must take into consideration the philosophy of that consultant. Many consultants are extremely product-oriented and take the position that the product or the franchisor is going to be the key to the success of the business. In other words, if you can come up with a product or service for which there is a terrific need, then that business must be an automatic success.  Or if you buy a franchise from a franchisor that is a well known name, then that will be a guarantee for success.

Of course, product demand and the track record of the franchisor are important, but in my opinion there is more to the big picture of choosing a franchise that will be right for you.  My philosophy is that the key to success in franchising rests heavily on the suitability of an individual franchisee to a specific franchise system.  

All franchise systems are subject to the 20-60-20 rule.  That is, 20% of franchisees in any franchise system are likely to do very well, 60% will do fair to average, and 20% are likely not to do well at all.

How is that possible when the franchisor offers the same level of training and support to all its franchisees?  It must be that some franchisees are more suited to that type of business than others, and that a business suited to one party might not necessarily be suited to another.

 COMPATIBILITY NEEDED

This philosophy requires primarily that the evaluation center on the person going into the business rather than on the business or product itself.   So in choosing a consultant, you should first evaluate the consultant's philosophy to see if it is compatible with your own.

The second type of advice a consultant offers is factual information, such as informing the client of the numbers of years a franchise has been in business, the number of lawsuits that may have been filed against the franchisor, the number of franchises opened and the published reputation of the franchisor.  That kind of information is more objective than subjective.

There are many reasons a prospective franchisee might want to retain a franchise consultant.  For starters, potential franchisees are generally looking at making a sizeable investment that could have a dramatic impact on their lives.  As in any other situation of such magnitude, it makes sense to seek out some expert advice.

Success in franchising involves reaching your goals in your time frame.

A person who comes up with an idea for a business and would like to explore that idea to see how sound it is will often pay the small fee required to retain a consultant with whom he can discuss the idea.  That type of service can even be obtained at no charge by using the offices of SCORE, which is a group of volunteer executives working under the federally supported Small Business Administration program.

A Person with an existing business who is thinking of expanding it through a licensing or franchise program would likely seek out the advice of a franchise expert, many of whom are listed in the Franchise Info Mall web site.

Similarly, a person who wishes to make a change in life by getting into a business of his own can benefit from the services of a franchise consultant or a broker.

A franchise broker gets paid a commission on the sale of a franchise.  Many such brokers are business brokers who have added some franchises to their inventory of salable products.  Those brokers will only sell businesses or franchises with which they have a listing agreement.  It is important for a client using the services of such intermediaries to determine the exact relationship that exists between broker, franchisor and client.

Some consultants will offer to sell any legal franchise or business opportunity available, regardless if there is a pre-existing agreement with the franchisor.  Those consultants may either bill the client on a per-fee basis or rely on another form of payment.

If you are looking to get into a franchise, there are over 4,000 different ones available.  Many can provide you with the expertise necessary to start and continue a successful business.  Others are not so well positioned.  Many franchises may be suited for you, but which franchise will be in your very best interest?

 CONSULT AN EXPERT

It may be to your advantage to consult with an expert.  The expert should:

Evaluate which type of business will be in your best interest based upon your financial needs, personal considerations and character traits.

Search for a franchise with a creditable track record within the type of business that meets your needs.

Advise you on what is generally expected in a franchise agreement so that you can compare your selection with industry norms.

Help you get all the necessary information on what you should expect from the franchisor.

Explain how you can check out the franchise and do your own due diligence.

Assist you in reviewing the legal documentation.

Assist you in exploring financing options.

This is a major life decision, so in buying a franchise do not be impetuous.  Check out that the opportunity is right for you, as well as the credibility of the business, through due diligence.  Retain expert advice, then make your decision right away.

There are many reasons a prospective franchisee might want to retain a franchise consultant . . . it makes sense to seek out some expert advice.

Keep in mind, too, that the world of franchising includes many different types of opportunities, a fact that greatly increases your chances of finding just the right match for your particular situation. 

Some of the types of franchises currently available include investment-only opportunities, part-time ventures, self-managed single units, multiple unit chains, single-branded, dual-branded, multiple-branded, regional and master license opportunities.

There are franchises that can be run from home, from a conventional storefront, from an industrial warehouse, even over the Internet. Franchised businesses play an important role in a wide variety of economic sectors: automotive, fast food, business services, home and personal services, health care and more. 

Tapping outside expertise makes sense when looking at major decisions.

In fact, the variety of franchise opportunities available and the large number of configuration options in which they are offered make it highly unlikely that any motivated potential franchisee would find himself or herself in a situation where there simply was not a business on the market that could meet their needs.

That being the case, the sooner you start on your own franchise search, the better. And be sure to consider the advice and assistance a qualified franchise consultant might be able to offer.

Source: Geoffrey Stebbins, president of World Franchise Consultants