Rick Bisio,
Founder of The Educated Franchisee recently sat down with Franchise Gator and
told us a little more about his company:
What
is a franchise consultant/broker?
A
Franchise Consultant is a person that assists a prospective franchisee identify
and investigate franchise systems. A
high quality franchise consultant will have at least five years of practical
franchising experience and would ideally have experience both on the franchisor
and franchisee side of the equation.
What are the pros and cons of using a
consultant?
The
Pros of using a franchise consultant revolve around time and focus. A high quality franchise consultant will
provide you with the guidance and advice needed to quickly and effectively
define what type of franchise system would be the best fit for you. They will also identify viable alternatives
and support the prospective franchisee throughout the discovery process making
sure that the each aspect of the business is fully explored.
Many
people believe that the con to working with a franchise consultant is that they
do not work with every franchise system under the sun. Personally, I think that is a ‘pro’. There are thousands of franchise systems and
some are simply not worth looking at. The real ‘con’ when it comes to franchise
consultants is the lack of consistency. There are no standards when it comes to experience or background. As a result, some franchise consultants are
great and others are simply pitiful.
How do I find a good consultant? What questions should I ask?
First,
the consultant should have a minimum of 5 years of practical franchising
experience PRIOR to becoming a consultant.
Second,
ask to see their bio. The consultant should have a proven track record of
success in franchising and in related activities.
Third,
Google their name. If it is a common
name, Google the name along with the word ‘Franchise’. You should be able to find a lot of
information on the consultant this way. By
the way, the website that the consultant sets up to promote themselves does not
count as information – that’s marketing.
Once
you know that the person has the experience base to add value to your investigation,
you need to make sure you like the person. Do you think the person will always have your best interest in
mind? Can you speak openly and honestly
with each other? Do you trust them?
How does a consultant get paid?
The
service that a franchise consultant provides should be completely free to the
prospective franchisee. A franchise
consultant is similar to an executive recruiter or a buyer agent in a real
estate transaction. They receive
financial compensation from the ‘seller’ only if they are successful. The seller, in this case a franchisor, shares
part of the franchise fee with the franchise consultant if a new franchise
relationship is formed. There should be
no cost, or obligation, to the prospective franchisee. In short, the Franchise Consultant only gets
paid if they are able to find the right business for the right person.
How do I ensure that the consultant is
making recommendations that are best for me?
During
the course of the interview process, the franchise consultant should have
learned enough about you to factually know what you are looking for. When the consultant recommends franchise
companies to you, there should be factual reasons that link the franchise
recommendations back to your wants, needs and desires. If you are not sure why a company was
recommended to you, ask the franchise consultation to connect the dots for you.
What
qualities do you think make a good franchisee?
A
good franchisee has the ability to both lead and follow. First, a franchisee must be the leader of
their business. They must have the
ability to set a vision, get buy in from their employees and stay focused on
success. Every day they get out of bed
knowing that the buck stops with them. At the same time, the franchisee needs to be willing to follow a proven,
successful operation system. Big egos
don’t always work in franchising. A
franchisee needs to respect the fact that others have gone before them and
value the accumulated knowledge found within the organization.
What is your favorite advice for new
franchisees to help them succeed?
Remember
what you are buying. You are buying ‘the
right to use the franchisor’s operating system’. So, when you do your due diligence make sure
the system works. A franchise system
should predictably reduce your business risk. Make sure the system does that BEFORE joining the franchise system. Then, once you become a franchisee, follow
the operating system. That is where the
value lies. That is what you
bought. So use it, learn it follow it.
What would you tell potential franchisees
that may be nervous about the financial burdens of starting a franchise?
I
would agree that there are financial (and emotional) risks when you chose to
invest in yourself. There is the chance
that you will not be a good business owner, that you will not be willing to do
what is necessary to be successful. At
the same time, remember that only road the true financial success is business
ownership. The Millionaire Mind by
Thomas Stanley shows that the vast majority of financially successful people
own their own businesses. The real
question is whether you trust yourself enough to invest in yourself. If so, then you are making the right
financial investment.
What
was your background and experience?
20
Years in Franchising
10
years in Franchise Consulting
Director
level experience in the Popeyes Chicken and Biscuits, Churches Chicken,
Seattle’s Best Coffee and Cinnabon franchise systems.
Vice
President experience at Environmental Biotech franchise systems
Franchisee
experience in Action Coach and Snap Fitness
Author
of the best selling franchise book âÂ�Â" The Educated Franchisee. Also written The Franchisee Workbook and A
Glossary of Franchise Terms
Speaker
at many franchising events
Formerly
owned an import/export business.
BSBA – Washington University (Business); MBA/MIM – The American Graduate School of
International Business (AKA – Thunderbird)
Father
of two
Do you have any franchisee testimonials or
success stories that you would like to share?
Over
the past decade, I have worked with thousands of prospective franchisees
assisting each individual throughout the exploration process. It has been exceptionally rewarding. However,
as a matter of professional courtesy, I do not provide the names of the people
that I have worked with. If you would
like to learn more about me, I would suggest that you ‘Google’ my name. The first 15 pages of listing are about
me. In addition, read my books. Finally, give me a call. I would be happy to answer your questions.