Tag Archives: los angeles

Anyone Can Become a Franchise Consultant

New franchise consultants enter the marketplace on a regular basis. After all, unlike accountants or lawyers, no license is required, no examination or certification is necessary.  Becoming a franchise consultant is easy.  All it really takes is to know a little more about franchising than the clients you hope to attract. With a convincing  and well designed website,  methods to appeal to a very vulnerable audience, use of social media to promote you or your consulting company, low balling of realistic consulting fees, and promising delivery of required services in speculative and unattainable time periods, you’re open for business.

Having provided franchise related consulting services for over 35 years, we have witnessed firsthand the plethora of new “consultants” entering the franchise space to offer advice and counsel. They attempt to do this where the parties in a franchise relationship must invest considerable sums of money, which in most cases, they cannot afford to lose. The depth, wisdom, experience and ethics that are required of those who offer franchise consulting services must be unquestionable and backed by many years of excellence with a proven track record of accomplishment in this area.

There are, in fact, a limited number of what we believe are reliable and experienced franchise consultants. They understand that those seeking to  franchise their business are vulnerable, in that they believe and aspire to be the next “golden arches” in the business they desire to franchise. Realistically, few if any will achieve that, and most will not even reach less ambitious goals. Much of this can be determined up front by experienced and ethical consultants who, when it is called for, will tell a potential client that their business is simply not viable for franchise expansion, and that they need to avoid a costly and harmful investment by a prospective franchisor with unattainable goals. Responsible and experienced consultants will do that because it is the right thing to do.

Before retaining a consultant, do your due diligence very, very carefully. There is a lot at stake for all parties. Only very experienced & ethical consultants know and honor this. Unqualified and unproven consultants will all have a story to tell about their accomplishments but it is up to you,  as their prospective client, to ask all the hard and essential questions that will help you to determine their true depth, experience of accomplishment, and motives for offering franchise consulting services.

The Peril of Lawsuits for New Franchisors

Yes, there is litigation in franchising. Franchisees do sue franchisors for various reasons. But while no one can tell you how to completely avoid these occurrences, there are several things a new franchisor can do to greatly reduce the likelihood. It all starts with the words of Benjamin Franklin,  “An ounce of prevention is worth a pound of cure.” A new franchise program should be and can be conceived with many ounces of prevention to avoid the high costs and disruptive effects of franchisee lawsuits.

In addition to being a successful franchisor with hundreds of franchisees and a multi-store franchisee, I have been retained as an Expert Witness in nearly one hundred lawsuits between franchisees and franchisors. In the great majority of these cases, after I have reviewed all the complaints, the answers to the complaints and other related documents, I pose the same question.

“Why are we here? And most important, what could we have done to prevent this?”

In most of these cases it is my strong opinion that these disputes need not have occurred. If certain preventative measures and certain courses of conduct were adhered to, both parties would have been spared high and unexpected costs and undue damage to their company and their entire franchise network. Emerging franchisors need to understand this and from the beginning of developing their system, recruiting new franchisees and interacting with them on an ongoing basis, they need to practice that all-important “ounce of prevention” as the way to greatly reduce potential franchisee lawsuits.

In addition to developing franchise programs for our clients, we educate them in the following ways so they too can avoid franchise lawsuits:

  • Understanding how to establish a healthy franchise relationship
  • Clearly defining the respective roles of franchisor and franchisee
  • The language used by lawyers in drafting Franchise Agreements
  • How to present your franchise offering
  • How to carefully select new franchisees
  • What to stress in training new franchisees
  • How to structure effective franchisee support programs
  • How best to regularly monitor franchisee performance
  • How best to regularly monitor your performance
  • Training your staff on how best to interact with franchisees
  • The role of Franchise Advisory Councils
  • Essential methods of communicating with franchisees
  • Early warning signs of discord and how to deal with them

These are but a sampling of activities, strategies and programs early stage franchisors must carefully develop in order to greatly reduce the chances of litigation and the prospect of some day finding  yourself in a courtroom asking, “Why are we here?”

Are you contemplating franchising your business?  Let us help you with a FREE Assessment of your business.

Why we are the Best in the Business

We understand where you are now and where you want to be.  Our experienced team has been there, done that and we will help you develop the best franchise strategy for your business, and help you avoid common mistakes. 

Choosing the very best franchise consulting firm is essential.  Anyone or any entity can claim they are qualified to help you develop a successful franchise development program, but very few actually are.

We have been providing franchise consulting services for 35 years and our expertise and experience is unmatched. Integrity and reputation is just part of why we are the best in the business, we also provide you with 24/7 hands-on, personal care and offer competitive fees and flexible payment options.

We have been retained by hundreds of companies either involved in or contemplating franchising, from mature, well known and branded clients to early stage start-ups.  And, as a sought after expert witness for both franchisors and franchisees, you can feel confident that I understand all facets of franchising.

Please fill out our free assessment and let us know how we can help you with your business.