Franchising is the practice of using another firm’s successful business model. The word ‘franchise’ is of Anglo-French derivation – from franc- meaning free, and is used both as a noun and as a (transitive) verb. For the franchisor, the franchise is an alternative to building ‘chain stores’ to distribute goods and avoid investment and liability over a chain. The franchisor’s success is the success of the franchisees. The franchisee is said to have a greater incentive than a direct employee because he or she has a direct stake in the business.
Franchise consulting, a specialized category of professional assistance for investors, entrepreneurs, and enterprises, is a field which has arisen from the increased popularity and profitability of franchising.
Potential franchise owners (called franchisees) employ franchise consultants to help choose the correct franchise company (“franchiser”) in which to invest. Conversely, franchisers employ the franchise consultant to act as an agent between themselves and interested franchisees. The majority of franchise consultants offer their services free (or virtually free) of charge to the franchisee, primarily receiving remuneration from franchisers. So their statements of “free” services are incorrect. The money paid by a franchisee to the franchise company passes from the franchise company into the pockets of the franchise consultants.
WE HELP A POTENTIAL FRANCHISEE, INCLUDING:
- how to assess the odds of success or failure of the franchise offered for sale.
- how to find the ideal franchise based on the franchisee’s background, capital, and expectations;
- how to read and interpret the Franchise Disclosure Document (FDD);
- how to understand the franchise agreement contract;
- how to evaluate trend and economic data;
- how to realistically examine personal strengths and weaknesses;
- how to uncover free and fee-based training programs for potential franchisees;
- how to market specific types of franchises; and
- how to build franchises.
WE ASSIST FRANCHISORS BY:
- screening franchisee candidates and investors;
- giving the franchisor marketing, advertising, and training advice;
- evaluating companies’ “franchise-ability”; and
- building brand recognition and loyalty;