8 Factors to Consider When Choosing Franchise Advisory Services

Making decisions about your business can be a laborious process. Especially when you're just starting. Exploring businesses and franchising is no different, picking someone to work with your business is a vast deal and requires a leap of faith.

According to 2019 research in the journal of economics & management strategy, businesses that are franchised have an 8% success rate over two years compared to businesses that stay independent. These same businesses have a higher success rate of 6.3% over one year.

This is all the reason to turn your business into a franchise and to do that you need to consult with franchise advisory services that know this field well.

Franchising

Franchising is the method of creating a brand and distributing its products and services. This process involves a franchisor who develops a brand or company and a franchisee who pays a royalty to use this brand name and system. Both the contract and the business are called franchises. 

Franchise Advisory

If franchising is something you’re interested in but do not understand how to start the process whether as a franchisor, you will need to hire a franchise advisor.

Franchise advisors are experts in the business. They are people or companies that offer a free service that matches aspiring franchisees to “the right” franchisor. Advisors help you explore your options and determine the skills that you need to help your company grow.

If the advisor successfully convinces their client to buy a franchise they’re aligned with, they gain a commission.

Advisor vs Broker

Often mixed up, but not the same. A franchise advisor differs from a franchise broker. As mentioned above an advisor consults with you and your company about the franchise world and navigating it, however, a franchise broker sells franchises on behalf of the franchisor.

Think of brokers as real estate agents who convince the franchisee that the company they work for is their best option.

8 Factors of Franchise Advisory Services

There are thousands of franchise systems, and the selection process can be scary and overwhelming. The US franchise sector alone is comprised of more than 300 different industries.

Picking a franchise advisor should be a tactful choice, as not one size fits all. Here are some factors to consider when choosing franchise advisory services:

Extensive Experience

You want your consultant to have the extensive knowledge to help you on this journey. The more your advisor knows about the franchising business, the better off they are in helping you figure out the best path for you and your business.



Well Informed 

Your advisor needs to be well informed about who you are, what your business entails from the products or services that are being offered to the company culture of your business. 

Pre Screened Advisors

Anyone can call themselves a franchise advisor. Look for advisors that work within recognized franchising companies and have a track list of people they’ve worked within the industry. 

Reputable advisors should spend time with you to get to know your brand, company, and every little detail before making any extensive decisions.

Professionalism

While advisors/consultants tend to have other jobs besides advising/consulting your chosen advisors shouldn’t have too many projects that would distract them from giving you and your business the proper attention it needs.

You would need to hire someone that doesn’t dabble into franchise advising but has a long list of professional experience.

Results

The best way to find out if something works is to look at previous results. If your advisor has worked with reputable companies and delivered continuously they should not have too much difficulty delivering the same results to you. 

Processes

While franchise systems differ, there is a general process that most advisors follow. 

• Introductory call
• Questionnaire & Consultation & Recommendations
• Weekly calls spanning two months
• Revisiting the drawing board if need be 

This process when done by an excellent advisor usually spans from 15 to 20 calls and involves a lot of communication and revision between the client and franchise advisor.

A Franchise Advisor that Listens and Isn’t Pushy

If you feel uncomfortable with the relationship, you have with your franchise advisor, this will translate into your business decisions. Your choice of advisor should listen to you, understand your background, and not be pushy about what they think is right. They are there to advise, not enforce.

This business decision will be one of the if not the biggest decision of your life. Someone you get along with and trust should be a priority.

Open-Mindedness

Franchise advisors should give you the opportunity to decide. When deciding the kind of business you want to do, they should give you all the positives and negatives of all the choices and allow for space to change your mind and grow with the information given.

According to the US census, the types of franchises with the most business units are these: limited-service restaurants, gas stations, full-service restaurants, hotels/hospitality, and new car dealers. Discussing options like these with your advisors can help you deliver the best return on investment (ROI)

Franchise Advisory Services

Franchising might be right for you and your business, but in order to find out picking the best franchise advisor is important. There is no need to enter this business world blindly when there are people and tools in a place made to help you make well oiled and proper decisions. 

Franchise advisory services can save you a lot of time, energy, and money. Visit us to learn more about franchise advising and how to get a free consultation.