The Role of Franchise Consultants In India: Benefits And Drawbacks

The franchise industry is booming in India, quickly becoming an increasingly popular choice for young entrepreneurs. However, franchising is a complex process with many pitfalls to avoid. This can be intimidating for a beginner. This is where franchise consultants can help. In this article, we’ll cover the role of franchise consultants in India and the pros and cons of working with them. 

What does a franchise consultant do?

A franchise consultant is a professional who specializes in helping businesses expand through franchising. Their main role is to provide the right guidance and support to franchisors and potential franchisees. Franchise consultants in India have several responsibilities. Here’s a list of these.

Franchise development

When a franchise starts, there are many things to figure out. Franchise consultants can assist a business in developing a program that includes all the necessary elements to ensure the franchise system is scalable, profitable, and legally compliant. While a beginner can attempt to develop a program on their own, it’s always advantageous to use a consultant’s guidance to avoid the obvious roadblocks and utilize the loopholes. 

Franchise Sales

Franchise consultants can help franchisors find qualified franchisees by creating marketing and advertising strategies to promote the franchise opportunity. They review the franchisee applications and conduct interviews to ensure potential franchisees meet the brand’s requirements. In this case, they act as a franchisee filter, wherein they maximize the qualitative output using their expertise in the industry. 

Franchise Support

When a franchise is set up, the franchisee needs support and training regarding the operation of the business. The training might be for just the beginning phases, but the support will be ongoing throughout the life of the agreement. Franchise consultants in India can provide this support and make the franchisee’s journey smooth and enjoyable. 

Legal compliance

Generally, experts are needed to ensure that the business complies with all the applicable guidelines and legal regulations. So, franchise consultants can review franchise agreements and other legal documents to ensure fairness between the franchisor and the franchisee. 

Apart from this, franchise consultants can advise the franchisee on marketing, branding, operations, and financial management. 

Benefits Of Working With Franchise Consultants In India

Working with franchise consultants comes with an array of benefits. Here’s a detailed list explaining all of them. 

Accessing Their Expertise

One of the main benefits of working with franchise consultants is their expertise in the franchise industry. Their extensive knowledge and experience in franchising can offer valuable insights into the franchising process. They can guide franchisees through all franchising stages till negotiating the franchise agreement. They can also advise on franchising aspects like marketing, advertising, training, and support. 

Utilizing Connections

Franchise consultants in India have an extensive network of franchisors, franchisees, and other industry professionals. They can use their connections to assist franchisors in finding qualified franchisees. In certain cases, having good connections can make all the difference, like when hiring a legal expert or a financial advisor. 

Saving Time

Finding the right franchise opportunity can be time-consuming, especially for those who are new to franchising. Bringing a franchise consultant on board can help franchisees save much time. A consultant can give them a pre-screened list of franchisors that are suitable for their skills, interests, and financial capabilities. This streamlines the selection process and reduces the time required to find the right opportunity.

Getting A Better Negotiation

Franchise consultants can help both franchisors and franchisees negotiate the terms of their franchise agreement. They can help ensure that the terms of the agreement are fair and equitable and in the best interest of both parties. This helps to start the franchise on a positive note and can help prevent disputes in the future.

Drawbacks Of Working With Franchise Consultants in India

No decision comes completely without drawbacks. While there are many prominent benefits to working with franchise consultants in India, a few downsides are important to be aware of. Let’s look at them.

High Fees

Franchise consultants typically charge a fee for their services, which can be a significant expense for potential franchisees and franchisors. The cost of consultancy can vary depending on the level of service provided and the experience of the consultant. The payment modes also vary from one consultant to another. Some charge a flat fee, while others charge a percentage of the royalties or the franchise fees.

Quality Of Service

Not all franchise consultants offer the same level of service, and it can be challenging to determine which consultants are reputable and which are not. Some consultants may lack the necessary experience or qualifications to provide effective guidance, and others may be more interested in earning a commission than in bringing valuable advice. There are no official certifications or markers to distinguish the quality of service offered by franchise consultants in India. Hence, getting the right person at the right time for your franchise-related worries is tough. 

Conflict Of Interest

Franchise consultants may have a conflict of interest if they represent both the franchisor and the franchisee. This can create a division of loyalties, and the situation will not turn out in the best interests of either party. Hence, franchisees should be aware of this potential worry before they hire a consultant for their franchise-related dilemmas. 

Limited Options

Franchise consultants may have only a certain number of franchisors in their network, which can be limiting for potential franchisees. Franchisees must do their due diligence and research the consultant’s background and franchise options. This will maximize the chances of them getting all the beneficial information at their disposal. 

Also read: Top Challenges Faced By Franchise Businesses In India And How To Overcome Them

Conclusion

Franchise consultants in India can provide valuable guidance and support to both franchisors and franchisees. Their expertise, connections, and time-saving services can make the franchising process more smooth and more successful. However, there are also drawbacks to working with franchise consultants, the most triggering of which are the fees charged and the potential conflict of interest. Franchisees should carefully consider these factors before onboarding a consultant and using their services for their franchise.