Joel Libava
I want to talk about a franchise coach. Not a particular one-just the actual title. Why?
Keep reading.
On Words
Words matter. They can be used in several different ways.
And, I hate to break it to you, but specific words can be-and are used to manipulate people…maybe even you.
In this franchise blog post-a super-important one for anyone looking to buy a franchise, I’m going to share information on franchise coaches and why they aren’t really coaches at all. Check this out.
Read these 3 words:
“A Franchise Coach“
What do you think of when you see those words?
A Little Experiment
Let’s try something.
I want you to close your eyes and create a mental picture of what you think a Franchise Coach looks like.
Now what do you see-rather, who do you see?
Him?
Or
Him?
If you’re like most people, you probably pictured someone who looks like he would be a coach.
So, why the heck would I show you a picture of the rather slick-looking gentleman above?
Because it’s important. Let me explain.
A Coach
The definition of a coach, from The Free Dictionary:
A person who trains an athlete or team: a football coach.
A private instructor for a student, singer, actor, etc.
You kind of knew that, right? Isn’t that the reason you probably pictured that guy with the green ball cap in the 1st of the two images above? A person who will root you on?
That said, I’m guessing that you didn’t picture a salesperson. Me either.
I lied.
I actually did picture a salesperson. Why?
Because I actually know what Franchise Coaches looks like. I also know what a Franchise Coach does.
With that in mind, would you like me to tell you what franchising coaches do?
I will in a moment. But first I want you to read what a franchise coach says he does in his own words.
What Franchise Coaches Say They Do
(Franchise Coaches are also called Franchise Consultants and/or Franchise Brokers. But they all do the same exact thing. I’ll tell you what that is in a moment.)
What follows are examples of what Franchise Coaches say they do-according to the words on their websites. (I changed a word here and there so I wouldn’t be accused of using their web copy for myself. Like I need it.)
4 Real-Life Examples Of How Franchise Coaches Try To Convince You They’re Coaches
Check out their marketing copy.
“Choosing the right franchise opportunity can be a daunting task, that’s why working with a Franchise Coach can help level the franchise playing field. And we don’t charge you a dime for our services.“
“Our process is just like working with a realtor. One of our Franchise Coaches will guide you through your search for a franchise, help you with any questions you have, and will strive to understand your needs goals for a franchise business. Our services are free, and if you buy a franchise we work with, you pay exactly the same franchise fee whether or not you work with one of our consultants or not.“
“Together, we will help you determine the ideal franchise for you at no charge to you. As a coach, I specialize in matching you and your business goals with the right franchise for you.”
“Once our brokers have introduced a franchise candidate to a franchisor, they remain totally involved, coaching you throughout the process. We have hundreds of consultants discussing thousands of franchise opportunities with their candidates each and every month, all at no charge with our Free Franchise Consultations.”
I Can’t Emphasize This Enough
“Free Franchise Consultations” are not consultations. They’re sales calls.
Simply put, every “Free Consultation” is designed to move you
toward a franchise
the “consultant” or “coach” represents, so the consultant can get paid his or her $20,000 commission from the franchisor.
My Turn
I’m not known around these parts as someone who’s shy when it comes to revealing things about the world of franchising that need to be revealed. Or, about sharing my opinion about an aspect of franchising that needs to be changed-and I certainly don’t want to hold back now. Here goes.
The 4 marketing messages above (gathered from 4 different franchise consultant/broker/coaching websites) have a bit of hidden code in them.
For example, the first message includes this: “Working with a Franchise Coach can help level the franchise playing field.”
Translation: The coach is actually the one leveling the playing field. That’s because he’s only presenting franchises that he has contracts with. There are over 3,000 different franchise opportunities available in the U.S. a Franchise Coach is only contracted with 100-300 of them. The playing field is immediately a whole lot smaller when you choose to work with a coach/consultant/broker. It’s just math!
A Classic Line Used By All Franchise Coaches
The second message contains a classic franchise coaching line: “Our process is just like working with a realtor.”
Translation: It sure is like working with a realtor. The realtor is very helpful and chock-full of useful tips on choosing the right home…right up until you find a few homes on your own…especially those that are “For Sale By Owner.” Those great tips you were getting? They’re only a memory. And, your realtor? She doesn’t get back to you as fast as she used to. She’s only a memory too. Because…
She’s Not Going To Be Paid If You Buy A House She’s Not Contracted With
That is to say, your Franchise Coach won’t be very interested in “helping” you if you end up finding a franchise opportunity on your own-one that she doesn’t represent. She’ll quickly become a distant memory, too. Notably, she’ll be on to bigger and better things. Like looking for people who will look at the options she presents-so she can increase her chances of receiving a FedEx envelope from a franchisor with a $20,000 check inside…made out to her. Let’s continue. Isn’t this fun?
In this case, it’s almost too easy to figure out what the hidden message is in the third marketing example.
“Together, we will determine the ideal franchise for you.” No kidding. Really? Together? Like you’re a team or something. You’re not a team. You’re a freaking payday (that was the translation).
Number #4 is a doozy.
“Once our brokers have introduced a franchise candidate to a franchisor, they remain totally involved, coaching you throughout the process.”
I’m starting to feel that you’re getting smarter about Franchise Coaches and their brethren, the consultants and the brokers. Am I correct? Keep going. Keep increasing your franchise coach IQ.
On Franchise Coaches Remaining Totally Involved
Why do you think it is that franchise coaches remain totally involved throughout the process? C’mon. You know the answer. You can translate what “totally involved” means. Here is comes. Your coach is going to stay totally involved…
So They Can Make Sure You Sign The Franchise Contract
FYI: A signed franchise agreement (contract) along with a paid in full franchise fee means they get paid (by the franchisor they’re contracted with)! You bet they’ll stay involved with you. As a matter of fact, you’ll hear from them a lot. They’ll stick to you like
3 Franchise Coach Facts
1. Franchise Coaches aren’t Coaches.
2. Franchise Coaches Are Salespeople.
3. A Franchise Coach Is A Franchise Consultant…a Franchise Broker.
Your next question to me should be:
Why would a franchise consultant/broker call herself a franchise coach?
Answer: Because she wants you to see the green ball cap.
In other words, she wants you to see her as a “coach,” not as a salesperson making $15,000-$20,000 for matching you with a franchise she represents.
You Will Run Across Franchising Coaches
Are you looking to possibly buy a franchise this year? If so, great! If not, that’s OK, too.
But if you are looking into franchise ownership, sooner or later you’re going to run into a franchise broker. Or, a franchise “consultant.” Or a Franchise Coach.
Fact: They’re all the same. All 3 do the same thing. And, most of them work with the same franchisors.
(That’s because only a certain number of franchisors work with franchise consultants/brokers/coaches.)
What Is A Franchise Consultant/Broker/Coach?
A franchise consultant/broker/coach attempts to match people to franchise opportunities that are in her portfolio of franchise opportunities-so she can get paid.
She only will suggest…present…pitch franchise opportunities that she has contractual relationships with.
That’s because if she makes a successful match, the franchisor pays her a commission of 40-50% of the upfront franchise fee.
$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
For example, if the franchise fee is $40,000, the consultant/broker/coach gets paid $20,000. Not a bad payday.
That’s why a franchise consultant/broker/coach offers their services for free.
The Truth: The only thing they’re coaching you on is how to buy a franchise they have a brokerage contract with so they can get paid.
Now don’t kid yourself. They’re working for themselves and the franchisors they represent. They aren’t working for you. In other words, you are not their client.
“Free Help Finding The Right Franchise”
Remember when I suggested that you would probably run into a franchise broker sometime during your search for a franchise to buy?
The reason you’ll run into a franchise consultant/broker/coach is because they usually advertise their services…their “Free” services.
Typically, you’ll see ads that offer “Free Franchise Consulting,” or “Free Franchise Coaching,” or “Get Free Help Finding The Right Franchise.”
With that in mind, I’m not suggesting that there’s anything necessarily bad about franchise brokers. I’m friends with several brokers…consultants…coaches. (So far. We’ll have to see what happens after word about this blog post gets out.)
And I gt it. All of us like to get free products and free services. Having someone offer to “consult” with you for free, or to be your “Franchise Coach” for free, is very attractive. Right?
This Is Important For You To Know
I used to be a franchise consultant. I speak from experience.
I didn’t like calling myself a “broker.” My business card said, “Franchise Consultant.”
Did I consult with people? Sure.
Did I coach people through the process? Yep. But why?
Why did I “consult” with and “coach” people through the franchise purchasing process?
Answer: For the same reason today’s franchise coaches-consultants-brokers do.
To make a sale.
Feeding My Family
That’s what I was doing.
Plus, I was helping people who had the dream of owning a business buy one.
And when they did buy a franchise concept I was contracted with, I got paid handsomely.
And when they didn’t buy a franchise I was contracted with, I didn’t get paid.
Honestly, it didn’t make me very happy to work with someone for 3-4 months and end up having nothing to show for it.
But, I understood. That’s why it was important to be working with a lot of people…people who were attracted to the idea of getting “Free Franchise Coaching.”
And due to the nature of buying a franchise…of taking a pretty large financial risk, lots of people dropped out of the process. But a few purchased franchises. As a matter of act, some of the people I helped get into business are still in business. Some aren’t. That sucks. It affected me a lot and still does. That’s the major reason why I’m not a franchise broker anymore.
That said, I continue to help prospective franchise owners choose, research and buy franchises. But in a much different way. This way.
Consider Yourself Educated
You’re now officially educated on the differences between franchise consultants, franchise brokers, and franchise coaches. (There are no differences)
- You know how they get paid-and how much
- You know they may not like calling themselves “brokers“
- You know why their services are free
Finally, you know words matter. That’s why a franchise coach isn’t really a coach after all.
Questions?
