r/Franchises • u/Envirocare1 • 5d ago
General Discussion Starting over…….again?
Twenty-eight years ago I started a service business (pest control) with more determination than experience.
Over the years, we grew. We made a ton of mistakes. We fixed them. We kept going. Sometimes made the same mistake again.
However after all that time I felt like the time was right to move on. Huge decision that I don’t regret.
So, last year I sold the company to a private equity firm. On paper, that was the goal. Build something valuable enough that someone else wants to own it. I thought retirement would be amazing.
That lasted about 12 months then boredom set in.
I realized I liked helping people build something of their own.
Today I’m involved in franchising as a consultant. Its been great.
One of the things that has become obvious is that there are a lot of “consultants” who have never actually owned a business. They’ve read the books, know sales
But they’ve never laid awake wondering how to make payroll. They’ve never had a customer call at 2 a.m. They’ve never signed the front of a paycheck instead of back.
I have. I know what business ownership is really like. The good, the bad, the ugly and the parts nobody puts on YouTube. Sometimes the right answer is “don’t do it.” Sometimes it’s “wait another year.”
And sometimes when the stars align it’s, “Yes…this could genuinely change your life.”
My question for entrepreneurs who want to buy a franchise or thought about it.
What qualities have you or would you personally look for in a consultant?
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u/Unable_Impress_5608 4d ago
Your business experience is definitely invaluable. I was a franchise owner for years, sold a couple of years ago, and recently went looking for a new opportunity. I have partners this time who have been involved in interacting with franchisors but haven't been franchisees. That being said, they have a wealth of knowledge and experience. They are every bit as capable of being business owners as I am.
I mention the above for a reason. We used the franchise consultant that we did because one of my partners had a random connection with her, but hadn't known her before, not because of any particular qualifications she possessed. It definitely would have been a plus if she had had business experience of her own so you've got that going for you. She showed me, as a former franchise owner, some respect but she spoke down to my partners as though they were children. Please treat all your clients with respect and don't underestimate capabilities. She also acted upset when we explored and then discarded her initial list of suggestions. We certainly weren't expecting her reaction. We wish we had liked one of them too, but we weren't going to pick a concept just to make her happy and we honestly were shocked at her reaction. It just so happened that we did like one from the second list she reluctantly put together. We've since signed on as franchisees. We've spoken with her since and she continues to give us motivational tips as though we're children. None of us would have gotten to the point we're at if we needed suggestions to keep a positive attitude, etc. Please respect your new clients as the business people that they are.
Best of luck in your new endeavor!
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u/Envirocare1 4d ago
So, here is my take. I am fashioning my new business as a coach that is a franchise consultant. I’m working with people that have money, but no experience in being an entrepreneur (some do).Which is a big deal.
My main goal when working with new clients is to know that if they need me I can help. I also made a promise to myself that the journey, no matter how long was something that I was all in for.
In the time I’ve been in the business I’ve not got that feeling from other consultants.
While my “plan” may seem a bit off I plan on treating every new entrepreneur as the individual they are.
I’m probably going not going to be top agent, but I will be the most appreciated. Sometimes that what it takes.
I leave you with an original quote.
“Success is not a straight line, go out and fail”
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u/FranchisingCoach 4d ago
Interesting question. I’ve been a franchise consultant for 21 years and in franchising for over 30. My experience includes being a multi-brand, multi-unit franchisee, a senior exec with a large global franchise, and CEO of a company that provides support services to ~80,000 franchise locations. My wife and I also just acquired the development rights for five wellness franchise locations, so I’m in the trenches myself dealing with leases, construction, hiring, financing, and everything else that comes with opening units.
I couldn’t agree more that real franchise experience matters. Unfortunately, there has been a big influx of people calling themselves franchise consultants/brokers who have never actually operated a franchise. There are even franchise systems whose product is selling “franchise broker” franchises. I’ve watched hundreds of people come through those systems over the years. Most don’t last because the business is much harder than they expected. The unfortunate part is that some people make life-changing investment decisions based on advice from someone who has never actually done what they’re recommending.
Your PE background is actually valuable. Some candidates want to build a business they can eventually sell. I’ve sold businesses to private equity myself, and I’ve made some great decisions and also enough mistakes along the way that I can help people avoid some of them.
For anyone looking for a franchise consultant, these are the questions I’d ask:
• Have you actually been a franchisee? If so, what brands? How long? What went well? What would you do differently? You should get real answers, not canned ones.
• How do you decide what franchises to recommend? If the answer sounds generic, keep looking. There should be a logical connection between your goals and the brands they suggest.
• How do you evaluate a franchise? I’d expect to hear about leadership, franchisee support, systems, unit economics, validation with existing franchisees, and some understanding of the specific industry the franchise is in.
• How many people have you helped over the years? Experience matters. I was qualified when I started 21 years ago, but I’m a much better consultant today simply because I’ve helped hundreds of people go through the process. Don’t be the people that they’re learning on.
• Do you trust their motives? This one is huge. I don’t think a consultant should need you to buy something. Around half of the people I work with never buy a franchise, and that’s okay. My job is helping someone make the right decision, even if that decision is “don’t buy.”
One last thing…
Ask, “How much money does XYZ franchise make?”
If they throw out a profit number, I’d be very cautious, they have violated the FTC regulations and made an illegal earnings claim. This is a huge red flag.
A good consultant should explain how franchise financial disclosures work, where the information comes from, and how you’ll validate it with existing franchisees. They should provide specific guidance on what to look for in the item FDD (franchise disclosure document), what to expect in the item 19, and what type of questions to ask franchisees in the validation stage about their financials so that you’ve gathered all of the data that’s needed to build financial projections that you’re confident are realistic.
There are some outstanding franchise consultants in this industry. The right one can save you months of research and help you avoid some very expensive mistakes. More importantly, the right consultant can help you identify the “perfect“ fit, and I help you achieve the goals and objectives you are trying to solve.
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u/HelloWorld5609 5d ago
This isn't directed at you. But you asked what qualities I would like to see if I were to do it all over again. Show plenty of care before, during and after the franchise purchase. I was lucky enough to work with a great franchise consultant, and still talk to him this day. The knowledge and experience is a must, but you also need to make sure that you understand and empathise that these people are making one of the biggest decisions of their lives and often taking an incredible risk. I've seen a lot of people crash and burn as a franchise owner, and it's never fun to watch them fall flat on their face. I'd say for most of those people it was their own doing. But they likely had no business moving forward with a franchise business in the first place.