Title: Franchise Consulting or Franchise Brokerage
Keywords: Franchise Consulting,Franchise Models,Franchise System,Franchise
Brokerage,Business Coaching,Strategic Business Planning
Article:
Franchise consulting is a field similar to any other consultant that focuses on client
relationship, whereby the franchise consultant would charge a fee to a client in exchange for a
particular service. This is how the field of franchise brokerage was traditionally defined. If a
franchisor needed a particular service, whether it was the formation of their franchise
agreement, business planning, marketing and sales advice or any other type of third party
consulting services, they would hire the consultant, draft a contract and scope of service, and
pay consulting fees.
In the last few years, the definition has been changed as various franchise sales networks
borrowed the term “franchise consulting” or “franchise consultant” to describe “franchise
brokerage”. Instead of charging a fee, the franchise consultant offers their services for free
and receives compensation only if their client happens to purchase a franchise.
It is my opinion that this new definition undermines the concept of franchise consulting as a
service. In addition to those that are marketing themselves as franchise consultants, when
they are essentially franchise brokers, amounts to nothing more than a misrepresentation of
what they offer.
It is a little disingenuous to describe yourself as one thing, when in fact you are doing
something else. This is an issue that stirs a lot of debate in the franchise industry, and
unfortunately, as franchise networks continue to expand, it could potentially marginalize it. I
have seen this issue discussed on linked-in forums, trade shows and franchise radio programs.
Though I have not conducted any polls; still, I imagine to have done so, those in the industry,
would prefer the traditional definition.
Please note that there is absolutely nothing wrong with franchise brokerage. Franchise
systems are looking to expand their brands and many franchise concept leverage their
relationships with various brokerage networks to bring them qualified candidates in exchange
for a commission. It is no different than residential or commercial real estate brokerage,
mortgage brokerage or leasing brokerage. A fee is paid for a service done.
The issue here is to accurately describe and define the role. If you are a broker being
compensated by selling franchises, you can call yourself a franchise broker. And if you are in
the field of franchise consulting and are providing additional services for a fee, you can call
yourself a franchise consultant.
While I don‟t foresee this debate getting resolved in the immediate future, as the franchise
industry continues to mature, I think all of us should better call ourselves what we actually
are. A close colleague and fellow franchise broker loves to use the phrase “fransparency”.
Essentially, it is all about full disclosure. If we lay more focus on this franchise concept, the
franchise industry would position itself for the better future.
Author bio: The author of this article has specialization in Franchise Concepts. His
enormous experience is summed up in the article „Franchise Disclosure Document brings the
master plans for the Franchise Opportunities‟. Along with this he also provides franchise
consulting, franchise development and brokerage services to both individuals and franchise
systems.
Read more: http://sunshineconsultingltd.com