A franchise consultant, also known as a franchise broker, is the person who works with the franchisee and the franchisor designs the franchise agreement. A franchise in a business or entrepreneurial world is tied to an agreement to grant trade and trademark rights to another for-profit company in exchange for an initial royalty and an annual license renewal royalty.
A franchisor is a company or person who licenses a franchise, and a franchisee is an entrepreneur or business owner who uses another company’s franchise and brand to do business. The main duty of a franchise consultant is to help the franchisee find the best franchise to invest in, and his duty to the franchisor is to help him find a franchisee to invest in his brand.
You can choose to start a franchise consulting business. Some of the responsibilities of a franchise consultant include: drafting a franchise agreement for the franchisor with the help of a lawyer. Other roles include advisory as well as marketing roles for the franchisor.
Now, here are the ways to start your own franchise business.
Become a Certified Franchise Consultant – A Beginner’s Guide
1. Make a business plan
Since there is no special training required to become a franchise consultant, the first step to becoming a franchise consultant is to break a pit. defined a consulting business plan. What are the capital requirements for starting a franchise consulting business? How are you going to get the capital?
What will your business structure look like; in other words, will you work as a partner for franchisors or will you be an independent franchise consultant? Where the business will be located; is this a state or a city that you intend to open? How much will you earn per year and how will you run the business? All of this should form the basis of your business plan.
2. Make a list of all franchise companies
The next step is to do some research and list all the companies offering the franchise. This may involve meeting with business owners in your area; Find out about the basic conditions of the franchise. After that do your own extensive research on the business as it is your responsibility to your customers (franchisees) to make sure that any franchise deal they enter into is profitable.
3. Get the location
You can run this business like a home business but to increase the credibility of your business. You have to find a place for your business. Sufficient office space with simple office requirements. It will serve as a place where you will organize business meetings with the franchisor and the franchisee. This will be an added benefit if the business is located in a city with a large number of business owners and in a city center.
4. Scout for customers
The success of your business depends on the number of clients you can secure with a franchise. You need to have sales skills to convince customers to enter into franchise deals. This step may include arranging business meetings with potential clients to discuss affordable franchise deals that will meet the requirements of the business. Some franchisees may actually come to you to recommend a good franchise.
Another way to improve your chances of getting a franchise is to join associations such as the Franchise Brokers Association (FBA) and also talk to franchise consultants. You can also attend business conferences and seminars and share free postcards with new acquaintances you join; You can get multiple references for your services through the network.
6. Make sure you earn a lot
Franchise consultants who operate as subsidiaries of franchise companies earn money through commissions. They receive an agreed amount for each franchise contract concluded. Plus, they make money from franchisees by connecting them with good franchise companies. Most franchisees prefer to work with independent consultants rather than affiliate consultants. Some franchise consultants earn up to $ 20,000 for each franchise agreement they sign.
Finally, make sure you get all the necessary registrations that will allow you to conduct business in your state such as; Obtaining a tax identification TIN, registering your business to work as a legal entity will also increase the credibility of your business, as well as purchasing commercial insurance to cover your business from any issues. responsibility of your customer.