In this post, I’m going to share the one thing that the current crop of Franchise Consultants never tell you.
But before I begin, I
want need to make sure you know which Franchise Consultants I’m talking about here. Because there are two different types.
The 1st type of Franchise Consultant is a person who (for a fee) helps independent business owners convert their businesses into franchise businesses. These consultants can be one-person shows or part of a Franchise Development firm.
The 2nd type of Franchise Consultant is a person who works with companies who have already converted their businesses into franchise business. They serve as a sales arm for the franchisors they’re contracted with, but they don’t get paid unless they sell a franchise. And it’s these Franchise Consultants who I’m writing about today.
Have You Run Across Any Franchise Consultants?
If you’ve been investigating franchises for at least a couple of weeks , chances are you’ve run into Franchise Consultants. They’re the ones who offer “free help finding a franchise.” Have you responded to their ads? Have they emailed you-out of the blue?
And while the “free” does sound attractive, there’s one thing they never tell you.
They never tell you that you are not their client. But why? Why don’t they tell you? Why aren’t they fully transparent about who their client really is?
“Get Free Help Finding The Right Franchise For You!”
You do know why Franchise Consultant offer their services for free…right?
The reason they offer to “help” you find the right franchise…for free, is because they get paid by their clients. In this case, their clients are the franchisors they represent.
But why don’t they tell you that before you start working with them?
Here’s Why Franchise Consultants Don’t/Won’t Tell You Who They Really Work For
That’s how much they get paid (on average) every time they place a candidate (you) into a franchise opportunity they represent. That’s right. They receive a $20,000 commission! And it comes from the upfront franchise fee you pay when you buy the franchise.
That’s why they don’t want to tell you who their client is.
Does that bother you?
Or, are you the type that figures as long as the Franchise Consultant matches you to a franchise you like and you think you can make money owning, you don’t really care how much money he or she makes. But wait.
The weird thing is that when you’re working with a Franchise Consultant, you absolutely feel like she’s working for you. That you are her client. After all, she’s spent time learning about you, including asking you for personal information-like your net worth, etc. And she is trying to help you find a franchise. What’s wrong with that?
She’s encouraging you to buy a franchise that’s supposedly a “good fit” for you because she has a signed a contract that states she’ll get paid around $20,000 if you do buy it!
Again, who’s her client?
The one who’s paying her!
There’s Much More You need To Know About Franchise Consultants
I can’t emphasize this enough:
I only shared one thing I felt you need to know about Franchise Consultants. There’s plenty more. Especially if you’re thinking about working with one of them.
So, if you’re the type of person who likes to have all the information, I encourage you to read my two-part article that explains everything you need to know about Franchise Consultants.