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Use the Consulting Process When Buying or Selling a Franchise

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Whether youíre the franchise buyer or the franchise seller itís in the interests of both parties to make the right decision. The following is a way in which buyer and seller can reach this goal.

There The franchise sales process includes a significant exchange of information between the franchise candidate and the franchisor sales representative. From the candidateís perspective he requires answers to a number of questions while the franchisor representative strives to provide as much information as franchise regulations will allow. An effective way to achieve the goals of both parties is to use what I refer to as the consulting approach. Simply stated, the franchise candidate acts as the client and views the franchisor representative as the consultant. Conversely the franchisor representative conducts themselves as the consultant and the candidate as the client. The result should be a win-win for both parties.

The Consulting Process

Following are some suggestions for using the consulting process:

  • In addition to the typical franchise evaluation process a franchise candidate (client) should develop a list of detailed questions pertinent to the specific franchise they are considering.
  • The franchisor representative (consultant) needs to have an in-depth understanding of what the candidateís qualifications, goals, objectives and expectations are. This information should be in addition to what is contained in the franchise application.
  • Itís important that the candidate contacts some existing franchisees before getting deeply involved in the franchising process. This should help them determine if the franchisees are reaching their goals and that the franchisor delivers what they promise.
  • The franchisor representative should provide the candidate the knowledge and information that will help the candidate make an informed decision regarding the purchase of the franchise.
If the franchisor representative and the franchise candidate act as consultant and client the probability of both parties making the correct decision increases.

© 2013 FranchiseKnowHow, LLC

Ed Teixeira is the President of FranchiseKnowHow, LLC. He can be reached at franchiseknowhow@gmail.com

 
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