Role of a Franchise Consultant in franchising
If a business owner plans franchising as a method of expansion it makes sense to have a specialist franchise consultant on board for development work. This would ensure that the business has the necessary knowledge, skills, tools and system in place for the franchisor’s journey ahead.
Franchise consultant will provide market knowledge and expert insights to the owner looking to expand through franchising. More importantly he will explain the basics of franchising and the responsibilities that come along with it. Selling a franchise is one thing, maintaining the franchise system is a totally different matter.
The franchise consultant will look to gain a thorough understanding of areas pertaining to operations, revenue streams and costs. Some business owners may feel that by taking on franchising, they will lose their proprietary items or methods. Coming up with the structure for franchise fees, royalties, necessary marketing contributions and other associated fees, is not simply plucking numbers from the sky and putting it into a franchise offering format.
Through analysis of the business and income streams, the franchise consultant will appropriately structure the franchise model in a manner that is not just viable but, perhaps more importantly, specific to the business’ situation and needs.
An operations manual will be a reference point for franchisees and their employees whenever they are in doubt of any processes or procedures. It will also help those within the franchise system to learn and understand their roles and responsibilities.
The franchise consultant will be better equipped to deliver the operations manual with their own techniques.
Strategic assessment and planning by the franchise consultant, coupled with developmental knowledge will ensure that the franchise agreement being developed is specific to the business, objectives and situation.
Franchising has proven to be a popular business expansion model but it should be done right to benefit both franchisor and franchisees in the long run. Businesses looking to franchise should understand that developmental planning and execution by a specialist franchise consultant represents a key function to any franchise system and it requires specific knowledge to encompass practicality and sustainability.