In this post, I’m going to show you 5 things franchise consultants do to reel you in. The things they do to “encourage” you to work with them.
Fact: Franchise consultants (along with their brothers and sisters, the franchise brokers and franchise coaches of the world), are getting more aggressive than ever before.
It used to be that when you were searching for a franchise to buy, you may on occasion, be contacted by a franchise consultant to see if you’d like to use their “free franchise matching” services. Not anymore.
These days, it’s not unusual for potential franchise owners to get contacted by numerous franchise consultants, all offering to work with them for free. But why for free? What gives?
In short, there are two reasons for this:
1. There are more franchise consultants around.
2. Their payday$ are higher than ever before.
So, in order to score a big payday, they have to get to you (a potential franchise buyer) before another franchise consultant does.
And once they get to you, they have to convince* you to work with them. In other words, franchise consultants have to find a way to “reel you in.”
*If you’re wondering why you’d have to be “convinced” to “get free help finding the right franchise,” I recommend you read “What Everybody Need to Know About Franchise Consultants,” so you can see why franchise consultants offer their services for free.
Here Are The Top 5 Things Franchise Consultants Do To Reel You In
Without further adieu, here are the top things today’s franchise consultants do to reel you in-so you’ll work with them and help them reach their financial goals.
1. Franchise consultants tell you (energetically) that “We work with 250 different franchise opportunities.”
Now, to be sure, that’s a lot of franchise opportunities. But, let’s put that number in perspective.
Considering the fact that there are over 3,200+ different franchise opportunities currently being offered in the United States, the franchise consultant who’s trying to convince you to work with her (for free) only has access to 8% of them. Not only that, believe me, she’s not going to present all 250 opportunities to you.
Instead, she’s going to present 3 or 4 franchise opportunities that she feels are a “fit” for you.
What about the other 3,196 franchises?
What if you’re a good fit for several of them?
I guess you’ll never know.
2. Another thing you’ll hear from a franchise consultant who wants you to work with him is this:
“We thoroughly vet every franchise we work with.”
That’s great! It’s actually good for you to have access to franchise opportunities that have been “pre-screened.”
Of course you may want to ask him exactly how their “screening” process works.
This Is Good Stuff!
Because if you’re being presented with franchise opportunities that have been vetted by your franchise consultant-or the group of franchise consultants he’s aligned with, it must mean that the 250 franchises he represents are “good” franchises.
Furthermore, since the franchise opportunities you’re going to be presented with have been approved by the consultant, they undoubtedly come with some type of guarantee.
Franchise opportunities offered by franchise consultants are not guaranteed, whether they’re “vetted” or not.
So, when a franchise consultant hits you with “We represent 250 pre-screened franchise opportunities” as part of his sales pitch, it’s only that. A sales pitch. There’s nothing to back it up.
In other words, if your franchise business fails, your consultant isn’t going to give you the money you invested back.
The Bottom Line?
Vetting doesn’t matter. The quality of the franchise opportunity does.
As well as a slew of happy, money-making franchisees.
3. Most franchise consultants, as they’re trying to convince you to work with them, will tell you that they’ll show you how to research the franchises they present to you.
As a matter of fact, franchise consultants may even provide a list of questions you should ask franchisees, so you can get the information you need on the franchises she showed you. And the list of questions you get are usually good ones.
But they’re not as good as mine.
As a matter of fact, none of the things they’re going to show you about how to research a franchise will hold a
to what I teach my clients.
That’s because I have no skin in the game.
To be exact, I’m not going to get paid $20,000 if you buy a franchise.
To illustrate what I mean, I encourage you to watch this short video I did on one of the steps you need to take as you research franchises you’re interested in.
Proper Franchise Research Techniques Matter
Bluntly, a franchise consultant isn’t going to go out of her way to encourage you to look at competitors.
That’s because there’s a chance that you’ll like the competitor more than the franchise opportunity she introduced you to-which means she won’t get a commission check.
The upshot of all this is that you’ll be hard-pressed to find a franchise consultant who will teach you proper franchise research techniques, specifically, the kind of franchise research that may end up costing them a $20,000 commission.
Note: I understand that franchise consultants are “trying to make a living.”
That said, the purpose of this post isn’t to bash them. It’s to help you.
You need to understand that franchise consultants have a different agenda than you do.
As I have said, they need you to buy a franchise they represent. They don’t need you to buy a franchise they don’t represent.
4. One of the things franchise consultants do is compare their business model to someone else’s, as a way to sell you on why you should work with them.
For instance, you’ll sometimes hear them say that “Working with me is kind of like working with a Realtor. The seller pays my fee. And the price you’re paying for the franchise is the same whether you’re working with a franchise consultant or not.”
Admittedly, that part of their spiel is (mostly) right.
Except, I’d argue that in some cases, a franchise opportunity actually does cost more when you work with a franchise consultant.
That’s because franchise consultants, and the organizations they’re part of, encourage franchisors to raise their franchise fees-so there’s room for big consultant paydays.
FYI: I can normally tell when a franchisor is using franchise consultants to sell their franchises, because their upfront franchise fees are way higher than average.
(Just last week, one of my clients was asking me about a franchise opportunity he was looking at. It had a franchise fee of $49,000. I told him that it seemed high, especially for a relatively young franchise concept. I asked him how he found it, and he told me that a franchise consultant he worked with a while back presented it to him.)
To summarize, it actually can cost more the look at franchise opportunities that are represented by franchise consultants. That’s one more reason for you to look at competitors in the same space, so you can compare fees along with the opportunity itself.
Franchise Consultants/Coaches/Brokers Love What They Do
5. Franchise consultants will tell you that they “Love helping people become their own boss.” That they “Love helping people go into business.” And I’m sure they do.
But do franchise consultants love what they do enough to recommend other franchise opportunities (that they won’t get $20,000-$25,000 checks from), so their candidates can become business owners?
Again, I’m not bashing franchise consultants/brokers/coaches.
It’s just that the only way they get paid is by presenting franchises they have contracts with!
Equally important is the fact is that when you work with a franchise consultant, they refer to you as their “candidate” (when they’re talking about you with franchisors), not their “client.”
That’s because the franchisors they have contracts with are their clients.
Finally, if you’re interested in buying a franchise, I’d love to show you how I work. How you are the client.
How to Use a Franchise Opportunity Website
The 10 Commandments of Franchise Research
What You Need To Know About Franchise Consultants/Brokers