Franchise consulting

'Franchise consulting' traditionally meant the same consultant-to-client relationship as any other industry wherein the consultant charges a 'fee for services'. But, as of the late 1990s the term 'consultant' was adopted by franchise salesmen and brokers that began representing themselves as "free" consultants to prospective franchise buyers. These 'free consultants' provide introduction services for franchise opportunity sellers with whom they have worked out a pay-for-sale agreement. Therefore, they are driven by the desire to connect the 'client' to a particular franchise.

There are still franchise consultants who charge clients for input whether the client desires advice on buying a franchise or assistance becoming a franchisor of their own (hopefully quality) business. Know the difference between a commissioned salesperson and a fee-for-service consultant.

Overview

BROKER VS. CONSULTANT - a struggle to be appreciated:

Especially since the Federal Trade Commission Franchise Rule on Franchising changed the requirement that representatives of franchisors as salespeople disclose their past personal and professional history, there has been an onslaught of salespeople titling themselves 'consultants', and that includes several firms offering to train new members in as little as two weeks to become franchise experts prepared to advise new buyers as to the best opportunity in which to invest their available funds. Certainly there are competent 'franchise brokers' that understand the industry who can help advise buyers, but for the most part, a freshly minted broker (self-titled 'franchise consultant') is not equipped to assist a buyer with decisions concerning their entrepreneurial future.