Franchise consultants can be independent or work for a firm of business consultants who have trained the consultant, giving him access to their knowledge base and the help of their established and experienced attorneys, accountants, etc. The firm also provides them with leads during the initial period, creates a custom website, and provides business cards and other items needed for day-to-day activities and also access to all companies they represent. The consultants provide excellent training to help select the right business for the franchise prospect.
It is very easy to set up an office, since franchise, consultants can work full-time or part-time from their homes or from a small office, as they desire. Franchise consultants have to be motivated and organized and should have good communicating skills. It is a highly profitable business if done correctly. Franchisers pay $12,000 to $15,000 as a referral fee. If you are working as an affiliate broker of the firm that trained you, you get to keep 90% of the fee. Sometimes the firm works in collaboration with a financial institute and will get a referral fee if the franchise prospect is guided to approach them for financial assistance. The franchise consultant gets to keep 80% of the referral fee.
Franchise consultants have to be very careful and analyze the prospective franchise candidate, to understand his needs, his financial capital available, if the business offered is viable and if the candidate can make a success of it. They have to be realistic and make quick judgments and tell a candidate not to go for a business if he is not suitable for that business. Some franchise consultants get a bad reputation for recommending bad prospects to clients just to make a hefty commission for themselves. Try to be honest and remember that your primary duty is to help people get the right kind of business, not to make a profit selling loss making businesses.
The customers usually do not pay a fee to the franchise consultant; rather, the consultants are paid by the franchisers for giving good referrals. The candidates are questioned in length by the franchise consultants to determine what kind of business they are interested in and to determine what kind of business actually suits their profile. Thus, businesses realize the role of franchise consultants and pay good referral fees for each deal that is closed effectively.
You can be a franchise consultant by approaching a good, reputable firm as well as to be their franchise affiliate broker for the duration of your business. These are some tips for those who need to know how to become a franchise consultant.
There are firms that offer services as well as products to help run a successful business.
Source: Small Business Consulting