With over fifteen years of experience in Franchising, inevitably I’m asked by many friends, business acquaintances and those looking for the “next best thing” to give them a tip and recommend the New HOT Franchise; the next Starbucks, they should invest in. I tell them this: It doesn’t matter what the next hot franchise concept is, what matters is that you find what “YOUR” best concept is; what you love to do and then focus on finding the best franchise opportunity that allows you to do what you love. It is my belief that anyone who advises an individual whom they know little or nothing about, to purchase a specific franchise opportunity may be either uninformed, misguided, or both.
Unfortunately, most people starting to explore franchise business opportunities begin by going on the web and searching under “franchises”. Then they follow one of the numerous links available and contact one of the various “Free” Franchise Consultant services listed on the web. Through this process of “Free” consultations, buyers have their personality evaluated; options listed and are directed to a selection of “top” HOT franchise chosen “just” for them. Sounds great, the best franchise options listed, presented neatly on a platter, all you have to do is just sign and drive away to the bank…
Just for the record, a person who is paid a fee by a franchisor for helping someone select a particular franchise should be identified as a “salesman”. These “Free” "franchise consultants" are paid by a franchisor for presenting their concept to you. These franchise consultants work from a limited list of franchises that have agreed in advance to pay the consultant up to ½ the initial fee paid by you when you sign a franchise agreement. These consultants are in the sales business; they earn their living by your decision to buy what they represent and are not, in most cases, looking out for your long-term best interests. Why would you put your life savings at risk following this process?
As in the Real Estate business, where a Real Estate Broker represents the “Seller” not the buyer; in Franchising, a Franchise Consultant is actually a Broker who represents the interests of, and is paid by the Franchisor. These Consultants are not provided incentives to zealously represent the interests of the buyer such as making sure this investment is the correct one for you, nor provide any additional security to the buyer by fully reviewing the due diligence process. It is my opinion that what you need throughout the exploration of entering into the world of entrepreneurship and franchising is a Buyers Agent who is a subject matter expert to help you through the process and make sure your best interests are in the forefront of your business selection process.
Not all individuals are cut out to be business owners or franchisees. Sometimes you need someone to come in and evaluate your life, goals, habits, beliefs and expectations before you place you and your family’s security in jeopardy.
