Is hiring a franchise consultant necessary?

This is a frequently asked question by entrepreneurs considering franchising their organization. The simple answer is no, it is not necessary. If you decide not to hire a franchise consultant, it is advisable to have this knowledge within your company. This can be through you as the entrepreneur, but it can also be someone within the organization. Don't forget that acquiring all the knowledge about franchising costs time and money. Additionally, you can also hire someone with franchise experience, which takes time and likely costs more in the long run than a consultant. If you do not learn about franchising yourself, do not hire anyone with experience, and do not utilize the services of a franchise consultant, it's likely that things will go wrong. Since the introduction of the Franchise Act, it has become even more important to comply with the regulations customary in franchise organizations.

Are all franchise consultants the same?

The answer to this is; absolutely not and this can be confusing. There are three forms of franchise advice. Some consultants or advisory firms, including us, offer all services, while others might specialize in just one or two areas.

1. Franchise development consultants – These are the consultants who will take you from where you are now to the position of being able to recruit franchisees. They will help with a feasibility study to see if the organization is even "franchise-proof". Subsequently, a franchise development plan is jointly established. This outlines the unique selling points of the franchise organization, the added value to franchisees, and the division of tasks between franchisee and franchisor. Most franchise development consultants also help with developing a manual and drafting the appropriate legal documentation.
2. Franchise recruitment consultants – These are the consultants who help you find franchisees. They start with determining a recruitment and selection strategy. This ensures that you can select suitable prospective franchisees for the right locations. If desired, these consultants can take over the entire recruitment and selection process. This includes recruiting prospective franchisees, following up on leads, and conducting selection interviews. You can also choose to be trained by these franchise recruitment consultants, so that you or someone within your company can perform these tasks in a correct and effective way.
3. Franchise Operations consultants – These consultants are true experts. They can help franchise organizations with further developing processes and procedures. They also assist with daily operations and can act as a franchise manager within the franchise organization.

What should you pay attention to when appointing a franchise consultant?

1. References

A franchise consultant is not a regulated professional like a doctor, accountant, or lawyer. Virtually anyone, regardless of experience, can call themselves a franchise consultant. Therefore, references are very important: who else have they helped with franchise projects? Are they affiliated with the Dutch Franchise Association? What is their professional background?

2. One size does not fit all

When you go to the optician, you read texts from a chart while the optician tries different lenses to determine the strength. Eventually, the optician will select the best strength and matching lenses based on your wishes and needs. But what if the optician just puts his own glasses on you with the words: "Here, these worked for me". Then you know this is not a good optician because he does not "look" beyond his own experience.

Perhaps a strange comparison, but the same applies to franchise consultants, for example, if your prospective consultant gained their expertise by working at McDonalds for a while. They might have a narrow approach by saying: "This is how we did it at McDonalds". Therefore, it is always best to seek a consultant with experience in multiple industries and, ideally, other brands in your industry. Be very wary of the "cheap and cheerful" consultants who offer little more than template documents and "ready-made" advice.

3. What does a franchise consultant cost?

This entirely depends on what you want them to do for you. If you're looking for someone to help from the start to recruiting franchisees, then tailored proposals are made. The more you need the advisor to do, the higher the costs will be. Every company in every industry is unique. Depending on the concept and the industry, tailored proposals are made with a detailed explanation of the work the franchise consultants will carry out.

In summary, franchising is a long-term investment with a significant portion of the costs being paid upfront. Experience shows that this investment typically pays off quickly with just a few franchisees. However, it is worth the investment to set up the franchise model from the beginning, and a franchise consultant will certainly help you with this.

Team Koelewijn & Partners

Koelewijn & Partners stands out in the market for franchise development as we are the only organization in the Netherlands to have a truly multidisciplinary team of development, recruitment, and operations consultants 'in house'. For commissions, we coordinate with specialized colleagues from consultancy, recruitment, training, and legal matters. Additionally, we have ample international experience and an extensive international network of colleague organizations that can support in the respective country. Therefore, we are always up to date with the latest developments and achieve the best results for our clients. Would you like to know more about hiring a franchise consultant? Please contact us via the form below.