Some Things to Look Out For
- The meeting should be open-ended and an opportunity for you to ask as many questions as possible. The representative should not inundate you with too much industry lingo and technical facts.
- If the representative has a weak understanding of your concept, yet is trying beyond reason to convince you that the firm can handle the conversion.
- The representative is not answering your questions to your satisfaction or continues to lecture when the goal of the initial meeting is to determine if a business relationship is viable.
- The representative fails to give you some idea of what fees you will expect to pay.
- Being forced to sign any contract at your first meeting, even a non-disclosure agreement. You are there for information gathering only.
Franchise Consultants May Do More Than Consult
Depending on the size of the firm, some consultancy outfits offer a wide range of services, most of these catering to franchisors with operational, technical, or marketing issues. The larger firms can delve into such services as:
- Operations manual re-write
- Franchise prospect qualification
- Preparing advertising campaigns
- Corporate identity packages
- Website construction
Your goal is to determine if the firm has enough expertise to launch your franchise system and if they do so, you can eventually have access to their post-franchise development services. As you begin to sell more and more franchises, your growth will require ongoing development in key areas to support your concept’s expansion. It makes to sense to receive the attention from one firm if such support is available.
Financing Options
If the firm sees great potential in your concept, it may be worth negotiating unique terms to finance their services. You should enquire if the firm is willing to take some of the proceeds from initial franchise sales as payment towards services rendered instead of billing you upon service completed. Some firms may even offer customized payment options, depending on the extend of the services you intend the firm to undertake.
