A franchise business consultant dons a major role in the franchise business industry. As per a study conducted by KPMG, the franchising industry in India is slated to grow exponentially in volume in the coming years making for nearly 4% of the country’s GDP and is forecasted to generate about 11 million employment opportunities by 2017–18. The biggest stumbling block, however, is the lack of a uniform code of business practices in the country which has pushed the franchise fraternity back to the wall. This explains the crucial role of a franchise consultant when it comes to achieving a franchise’s growth and maintaining the relationship between a franchisor and franchisee.
How does a franchise consultant help?
A franchise consultant is a seasoned and qualified professional who helps entrepreneurs (both franchises as well as franchisors) to sell or buy a franchise business. The franchise consultant wears several hats: counselor, guide, trainer, and strategizer in planning, reviewing business plans & legalities, expanding & uncovering business opportunities, and launching new products and services. Although business validation can be done with an external business expert, how a franchise consultant can bring about the changes is crucial to your business.
Benefits for a franchisor:
If you think your business concept can travel places, as a business owner, you should explore and multiple business opportunities; this is where the role of a franchise consultant can be crucial.
A franchise consultant, therefore, firstly, showcases the franchisor’s products and services to a potential franchisee that is looking to set up the franchise business. A franchise consultant, with his/her expertise, helps tone down business risks; identifies suitable geographical regions; prepares financial details like setting up franchise fee, profit margins, royalty fees, business formats like FOCO (franchisee owned and company operated) and FOFO (franchisee owned and franchisee operated), etc. He/She also does the franchise & location profiling and rolls out operation plan, branding strategy, etc. Further, there is greater confidence shown by the investor in the case of a business validated by a franchise consultant than if done by a brand or business owner.
Points to consider:
If you are a franchisor, you need to first select an expert franchise consultant, using a standard procedure starting with an initial meeting with the consultant, quizzing him/her your business and industry related questions, etc. Once the consultant gets a hang of what you are expecting out of a potential franchisee and investment.