If you’re looking to buy a franchise, or perhaps looking to franchise your own business, it’s likely you will have encountered the terms Franchise Consultant and Franchise Broker. The terms are sometimes used interchangeably, but, as the names suggest, one acts as Broker and one as Consultant. What exactly are these roles? And what are the differences between them?
The Role of a Franchise Consultant
A Franchise Consultant can work for either a franchisee or a franchisor to support them in their activities. For those asking the initial question “How do I franchise my business?” consultants are a great place to start. They can turn to experienced consultants such as ashtonsfranchise.com/franchise-my-business/ for full consultancy services and support from the earliest stages. Those who are buying a franchise can turn to consultants for support and advice and to help them navigate their rights as franchisees. Franchisors tend to hire consultants before even selling a franchise, but may well retain their services. A franchisee is more likely to seek consultant support, having already purchased a franchise.
The Role of a Franchise Broker
A Franchise Broker, as the name suggests, brokers the deal between the franchise company and the franchisee. They typically make their commission from the franchise company, not the franchisee, but work for both to find the best deal. They will also help prospective franchisees to find a suitable franchise deal using expert knowledge of the current franchise market and all available franchise options. A broker can act like a matchmaker, pairing the perfect business and franchisee.
These roles have distinct aspects, although between them they help the process of franchise buying, selling a franchise and setting up a franchise to run more smoothly. The main difference between the roles of these organisations or individuals is that one helps the franchiser and franchisee to come to a deal, or for a franchisee to see the options they have, whereas the other provides support and advice to either party but does not actually manage the deal itself.