Is hiring a franchise consultant necessary?

This is a frequently asked question from entrepreneurs considering franchising their organization. The simple answer is no, it doesn't have to be. 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 yourself, but it can also be someone in the organization. Don't forget that acquiring all the knowledge about franchising costs time and money. Additionally, you can employ someone with experience in franchising, which also takes time and probably ultimately costs more money than a consultant. If you don't learn anything about franchising yourself, don't hire someone with experience, and also don't enlist the services of a franchise consultant, the chances are high that things will go wrong. Since the introduction of the Franchise Act, it has become even more important to comply with the laws and regulations that are common in franchise organizations.

Are all franchise consultants the same?

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

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 you with a feasibility study to see if the organization is even "franchise-proof." Subsequently, a franchise development plan is jointly set up. This outlines the unique selling points of the franchise organization, the added value towards franchisees, and the division of tasks between the franchisee and the franchisor. Most franchise development consultants also help with developing a manual and drafting the correct legal documentation.
2. Franchise recruitment consultants – These are the consultants who help you with finding franchisees. They start by determining a recruitment and selection strategy. This ensures that you can select suitable aspiring franchisees for the right locations. If desired, these consultants can take over the entire recruitment and selection process. Think of recruiting aspiring 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 carry out these activities correctly and effectively.
3. Franchise Operations consultants – These consultants are true experts. They can help franchise organizations with further developing processes and procedures. They also help with the day-to-day operations and can act as a franchise manager within the franchise organization.

What should you look for 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 card while the optician tries different lenses to determine the strength. Eventually, the optician will choose the best strength and matching glasses for you, based on your wishes and what you need. But what if the optician just puts their own glasses on you with the words: "Here, these worked for me." Then you know this is not a good optician, because they don't "look" beyond their experience.

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

3. What does a franchise consultant cost?

This depends entirely on what you want them to do for you. If you are looking for someone to help you from the start through to recruiting franchisees, then tailored proposals will be 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 tasks the franchise consultants perform.

In summary, franchising is a long-term investment with a large part of the costs paid upfront. Experience shows that this investment is usually quickly recouped with only a few franchisees. However, it is worth the investment to set up the franchise model from the start, and a franchise consultant will certainly help you with this.

Team Koelewijn & Partners

Koelewijn & Partners distinguishes itself in the market for franchise development because we are the only organization in the Netherlands to have a truly multidisciplinary team of development, recruitment, and operations consultants available 'in-house'. On assignments, we collaborate with specialized colleagues in consultancy, recruitment, training, and legal affairs. Moreover, we have extensive international experience and a broad international network of colleague organizations that can provide support in the relevant country. In this way, we are always aware of the latest developments and achieve the best results for our clients. Want to know more about hiring a franchise consultant? Then contact us via the form below.