What’s the point of a franchise consultant?

Hi folks!

Here’s one I hear a lot: 

“Why do I even need a franchise consultant?”

It’s a great question. And you’re right to be cautious, because there are plenty of scummy franchise consultants out there.

So let me lay out:

• Why franchise consultants exist

• What they do for you

• The two types of consultants that give us all a bad name

Here goes.

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A franchise consultant is like a realtor.

When you’re buying a house, you don’t need a realtor. But a good one makes the buying process way easier. 

• They find you houses that match what you want

• They know a good price when they see it

• They guide you through the paperwork

• They warn you if the parging on the brickwork is going to be a $30K repair job in the next 5 years

Plus, they get paid by the seller, so they don’t cost you anything directly.

A good franchise consultant does a lot of those same things. 

1. My first step is always to get to know you — your strengths, interests, capital, long-term goals — so I can find franchises that actually make sense for you.

2. Then we’re evaluating franchises together. I’ll bring you a shortlist, give you my honest opinion on their strengths and weaknesses, and help you figure out what questions to ask in the due diligence process.

3. Then I’ll help you line up your funding, and make sure you’re connected with the right people. Some lenders are better fits for certain franchises (like if they’ve financed a franchise in that system before).

4. Along the way, I’m your sounding board for any questions you have about the process as someone who’s been through the process several times before.

But there’s one key thing I don’t do: sell you on buying a franchise.

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I often talk to people who expect me to sell them on the idea of owning a franchise. 

If you need someone to sell you on this idea, you are not ready to move forward. 

The people I work with are already fairly confident they want a franchise, and bring me on board to help them find the right one. 

This newsletter, my YouTube channel, my social media…the goal is education. I’m not here to sugar coat anything. (Otherwise I wouldn’t be telling you 90% of franchises are hot garbage.)

But I have to warn you: plenty of franchise consultants are just looking for a quick buck. 

Here are two red flags to watch out for. 

1. The Salespeople

These are the good old-fashioned used car salesmen.

They look for people with even a shred of interest, then try to claw and grease their way into convincing you to own a franchise.

“Be your own boss, own your own business!”  Their goal is convincing you that this is the best thing you could do, no matter who you are or what you want.

The result: you get stuck in a franchise you shouldn’t own. You got sold on the idea, rather than deciding for yourself. 

Whether you work with me or not, my plea to you is simple: please do not work with one of these assclowns.

When you’re evaluating franchise opportunities, you are going to “get sold” by reps from the franchises you talk to. There’s nothing wrong with that — it’s their job, after all. 

But the last thing you need is a consultant in your ear who is also selling you. 

So before you work with a franchise consultant, ask yourself: does this person seem like a teacher or a salesperson?

I’ll give you one guess as to which is better.

Then there’s the second type of huckster. Less obvious, but still common…

2. The Bait-and-Switchers

Imagine you see a suspiciously good-looking BizBuySell listing. 

The revenue and cash flow numbers look incredible relative to the asking price.

You call them up and talk to a sleazy middleman who breaks the news: this is not actually an existing business, it’s a franchise.

That middleman is the franchise consultant. They’re playing a numbers game, posting clickbait business listings, and hoping that one in every few hundred people will end up buying. 

When that happens, they get paid, despite wasting several hundred people’s time and adding no consultative value to the process.

Do you want to trust a huge chunk of your net worth to someone who opens with a half-truth (at best)?

I promise you: the best franchise consultants in America are not lurking behind misleading BizBuySell listings.

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My biggest piece of advice: if you ever feel like your consultant is pushing you to buy something, run away.

Their job is to listen first, then find you things you already want.

And at the end of the day, owning a franchise has to be your decision. Don’t be persuaded.

So let me deliver the worst sales pitch of all time:

Unless you’re already genuinely interested in buying a franchise, don’t work with me. You’re not ready.

Instead, keep learning until you know what you want:

Keep reading this newsletter. 

Check out my resource library with a ton of franchise business models and guides.

And just get in the headspace: 

• Follow small business accounts like @girdley, @ChrisJBakke, or @mhp_guy

• Get your feet wet reading some franchise FDDs (here’s my guide, and where to find them)

That’s my advice. 

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Hopefully I answered your questions. If you have any other questions, about franchising, consultants, or anything else, just hit reply!

Thanks for reading. 

Connor

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