Franchise Consultant

It seems to make perfect sense… Hire an expert to help you buy a franchise and they’ll take care of all the gritty details so that you can concentrate on owning your own business startup.

Unfortunately life isn’t quite this simple. While there are truly independent franchise consultants, in reality, many of them are really commission-only sales people who’ll help you to buy a franchise so that they can take a big cut for themselves.

So what are the warning signs? Well, first of all, you want to find a franchise consultant who is paid by you and not by the franchise.

While this may seem expensive, to pay for advice that others offer apparently for “free”, what you’ll get is properly independent advice, not biased by the amount of commission that he’ll make by selling you a particular franchise.

Let’s take an example. Let’s say you get talking to a franchise consultant about buying a fast food franchise.

On his books he’s got 3 fast food franchisors each offering him a different amount of money for a sale. Here’s the franchises (all fictional and with no connection to any real franchise, past, present or future)…

Red’s burger costs $95,0000 and pays him $5,000 commission

Blue Chicken costs $75,000 and pays him $10,000 commission

Green Pizza costs $120,000 and pays him $25,000 commission

In this example, Green Pizza is a lot more generous with commissions. So which franchise is your franchise consultant going to promote now? It’s obvious isn’t it – he’ll be very tempted to promote the one that’s going to make him the big money.

Meanwhile Red’s Burger franchise, even if it’s by far the best franchise on offer, will never get any time or credibility at all from the consultant because he’ll make so little by comparison.

Now if you find a consultant you like, ask him/her to disclose how much they’ll earn for each of the franchises you’re interested in. And also ask if there’s a bonus for selling a certain volume of a given franchise too.

Of course, if you find a franchise you really like, and there’s a franchise consultant who’s willing to split his commission with you, that can be a great way to get a discount off the asking price of the franchisor!

Ultimately, when it comes to buying a franchise, the best and most trustworthy counsel you can get is your own. You just need to be educated so that you know enough about buying a franchise to be able to make the big decisions.

Of course, instead of a costly franchise consultant, you can learn the smart way to buy a franchise for yourself from “The Franchise Opportunity Workbook – How To Buy A Good Franchise And Avoid Being Ripped Off By A Bad One.”

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