Franchise consultants?

September 08, 2023

by an investor from Columbia University - Columbia Business School in Seattle, WA, USA

I'm specifically interested in looking into franchise opportunities, especially multi-unit resales or resales combined with new development rights.

In addition to reaching out directly to franchisors, I thought maybe working with Franchise Consultants can help. There seems to be a lot of them out there. However, I'm not sure who are the reputable ones and the ones who typically reach out on LinkedIn seem a bit shady.

Anyone has experience with Franchise Consultants? Good or bad? I'm sure not all consultants are made equal but just wanted to hear some stories on if they can be good resources and how they should be approached. I'm aware of the economic incentives they might have (e.g., that they have several brands they tend to push due to commission), which I don't mind as long as they can be a good resource and are transparent.

Thanks!

Reply by a searcher
from College of William and Mary in Champaign, IL, USA

I talked to a few early on, but I don't think they are actually a resource except in selling the franchises for which they're compensated. I wouldn't engage with them to ask their opinions on franchises they're not selling any more than I would go to a Ford dealer and ask for their opinion on the latest GM models. They know enough to sell the product, don't treat them as experts in the product.

Reply by a professional
from University of Southern California in North Palm Beach, FL, USA

One more tip: don't conflate business broker with consultant. There's a big difference, which can cost you big-time if you don't understand it. And this: Doing your homework will uncover the fallacy of lower risk in the franchise sector. As one of the searchers said to me, "why would I want to rent a business when I can own one?"

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