There is much confusion surrounding the titles of “franchise consultant” and “franchise broker,” and rightfully so. About 30 years ago, it became commonplace for many franchise brokers to refer to themselves as consultants to evade the stigma surrounding the term “broker.” However, in dodging the negative connotations often associated with brokers, they wound up creating confusion within the franchising community.
In the sections below we give a quick rundown of a few key differences between franchise consultants and franchise brokers to clear things up.
What is a Franchise Broker?
While a franchise broker may get to know you in a way similar to that of a consultant, their primary goal is to make a sale, as they represent a portfolio of franchises, and they get paid by commission. Competition within the franchise network is cut-throat, as they only represent 46% of all franchises in the market, so they may try to make a sale as soon as possible and however, they can.
Typically, smaller brands require the assistance of franchise brokers to expand their business. Since these brands are primarily the ones to employ franchise brokers, they are more likely to steer potential franchisees towards smaller companies that may not necessarily be the most lucrative investment. As a result, most broker networks restrict them from selling franchises within their network. In contrast, a consultant can direct you towards other options outside the network that may be a better fit for you.
What is a Franchise Consultant?
On the other hand, consultants are less keen on pushing sales, meaning they are more likely to make a decision that resonates with you personally. Franchise consultants exist to ensure that your investment is worthwhile. A skilled and educated franchise consultant aims to empower business owners to choose a franchise that suits their business goals, personality, skills, and lifestyle.
Consultants have the connections and skills to educate entrepreneurs about the other 54% of franchises on the market. You can rely on a qualified franchise consultant to inform you of the positives and negatives of owning a particular franchise, rather than solely focusing on making a sale, as a franchise broker might do.
With the help of a franchise consultant, aspiring franchisees can define their vision and map out a plan for the future. Once a consultant is aware of what you want, they bring the best investment opportunities to your attention. Like brokers, consultants often have access to ownership opportunities that may not have existed with your realm of knowledge. Franchise consultants do not get paid royalties. Instead, they get paid via franchise fee. In addition, franchise consultants are not restricted to a brokerage network.
Hundred Acre Consulting
At their core, franchise consultants and franchise brokers can play a pivotal role in choosing the best franchise opportunity for entrepreneurs. Additionally, both resources have access to respective networks of investment opportunities that you may not be aware of.
Whether you choose to work with a franchise consultant or a franchise broker, be sure that you are doing business with someone qualified and who has a profound understanding of your needs. Anyone who assists you in the beginning steps of owning a franchise must have your best interests at heart.
At Hundred Acre Consulting, we believe it is essential to work with people who seek to help you invest in a franchise that will benefit you for years to come. That’s why we work alongside you to find the perfect franchise opportunity and guide you throughout your storied career as a franchisee.
If you are interested in learning more about our services, contact us today, and let’s chat!
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