10 Questions {Plus 3} To Ask a Franchise Broker/Consultant

I am reposting this article on working with franchise consultant/brokers. I have added some more tips. Bottom line:

Use experienced professionals that live in your city, and are well connected there. 

Getting ethical, and professional assistance to help you find and purchase a franchise of your own can be a very wise choice! Using a local franchise consultant-broker, if done right, can help you define what types of opportunities could be a nice fit for you.

For those of you that are thinking about checking out some franchise opportunities, you will eventually run into so called "franchise brokers" or "franchise consultants". Here are 10 must ask questions for you to ask them, before you decide to work with them....

The franchise industry has experienced a ton of growth in the past 5-6 years, and with it, a plethora of so called franchise "brokers" and "consultants", who can match you up to franchises, and then get paid a finder's fee from the franchise companies for making a successful match. The executive recruiting model is very similar. However, just like not all executive recruiters are created equal, in the franchise brokering business, not all brokers are created equal.
{I am choosing to use the word broker here, but a franchise broker, and a franchise consultant are the same. The word broker, quite frankly is a shorter word, and hence, less typing is required}

Before you decide to use the FREE services of a franchise broker, you need to ask them these 10 questions:

1. Exactly how long have you been a franchise broker?

2. What is your franchise experience?

3. How many articles on franchising have you been quoted in?

4. How many articles on franchising have you written?

5. Are you part of a franchise yourself? And if so, do you get paid a fee for referring folks to your franchise companies headquarters?

6. Can you give me a list of 20 people who are in franchised businesses of their own, directly as a result of working with you in your current role as a franchise consultant-broker?

7. Can you give me the names of at least 3 franchise attorneys who know you, and who will vouch for your character?

8.  Do you hold face to face meetings in your local market area in your own leased office spaceor do you work from home, via phone? with prospective franchise owners,

9. Do you teach small business/franchise classes at local colleges, libraries and high schools?

10. Is this your only business, or is this an add on to another business of yours?

New questions just added!

11. Did you used to be a franchise salesperson?

{If so, franchise sales is a  lot different than franchise consulting}

12. Do you live here? Or... are you just passing through the area?

{Kinda like a traveling franchise salesperson..in and out, make a commission and goodbye}

13. Are you a former franchise owner? Recently sell your business? Now a franchise consultant-broker because you want something to do?

This list of questions is a good start for you, if you are considering working with a franchise broker/consultant. Here are a couple of things to really key in on, when selecting someone to help you with the process of franchise selection:

1. Is this broker locally based, or is it someone that you will only have phone conversations with? Or someone that you meet at Starbucks, because they won't lease an office?

2. Is this broker new? This one is huge. Do you really want to risk $100,000-$300,000 of your own money with a broker who is learning the franchise consulting business at the same time you are?

So many questions...So many brokers...

The most important thing to find out from a franchise consultant-broker is this:

Do they have skin in the game? Do they want to support the local small business community by bringing in new businesses, and new jobs? Are they willing to be there for you for whatever you need,  including helping you market and grow your business? Are they connected enough {Which takes many years} to provide whatever you need, whether it is local media coverage for a boost in customers, financing help, legal help, or anything that can help you, if you run into business problems?

Find out who they really are! Use their services after talking to lots of local references of people that have worked with this person, and actually helped them! Best of luck in your quest!

Comments

[Joel Libava]

Make sure you print this question list out!