Where Do You Begin Searching?
A franchise consulting firm may specialize in assisting individuals locate a suitable franchise opportunity and/or assist businesses with franchise development services. Your best place to begin the search is on a credible franchise directory website or industry association where these firms have become approved members.
Franchising is big business. Your prospect franchisees are going to assess your system on many different levels, each of which has to be defined and refined when converting your business. The process may be too overwhelming to be undertaken alone, even if you were to hire your own crew of experts such as lawyers, accountants, business managers, and franchise mentors. A consulting firm can provide these services all under one roof. You will be adding to the already-massive expense of conversion but it may be worth your time, energy, and efforts.
Franchise development can take as little as three months to twelve months. The complexities will vary, depending on the business model; therefore, the firm you hire should be comfortable and knowledgeable enough to have a solid understanding of your business. They will most likely have a formula to initially determine if your business can be franchised.
Before They Interview You, Interview Them
When you’ve completed your search and you have at least five firm you feel comfortable with, the next step is to book an appointment and be prepared to ask these questions:
- How long has your firm been in operation?
- How many members are on your staff? What are their roles?
- What franchising experience do each of these members bring to the firm?
- Does the firm have any affiliated professionals such as lawyers and accountants?
- Do you have a list of franchisors for whom you have developed franchise systems?
- What other services have you offered to existing franchisors?
- What are your areas of expertise when it comes to developing franchise systems?
- Does your firm focus more on developing systems, finding franchise opportunities, or providing franchisor services?
- What fees can I expect to pay to convert my business into a franchise system?
- What is my role in a possible partnership with your firm?
Most of these questions may be addressed at your initial meeting where the representative should give you an overview of the firm, what they do, and how they charge.
What You Should Expect to Receive After the Meeting
Since the development of a franchise system is going to cost you a lot of money, the firm should not make you walk out empty-handed after the meeting and feeling unsure about their practices. At minimum, you should receive:
- Printed brochures or a franchising kit that summarizes the services offered by the firm.
- A list of franchisors the firm has done business with and references you can call.
- A questionnaire that will help the firm get a better understanding of your concept.
- A follow-up meeting with the representative at your place of business.
