A good Franchise
Consultants can be very helpful in assisting you with finding the type of
franchise you might be interested in purchasing and with making you aware of
and matching you with opportunities that are congruent with the amount of
capital you have available or can acquire to invest. One of the fist things
they will or should do is to find out what type of business or industry you are
interested in (e.g. restaurant, computer service, shipping and supply, etc.),
inquire about your preferred type of ownership (e.g. owner operators/active,
absentee or passive), assist you with determining your net worth and to
understand how much money you have available for an initial franchise
investment. This is information that the consultant must know in order to
accurately and effectively find opportunities that best suits you and your
financial/capital wherewithal. Most consultants have a number of franchises
that they work to find candidates for and they will use the information that
you provide to identify and present to you companies that match your criteria
and companies they think you will be interested in.
The first caveat you
should be aware of is that the majority of consultants will only present to you
those franchises that fall under their umbrella. You see, the majority of
consultants provide their services to you for free because they earn and are
paid a commission per an agreement and/or arrangement that they have in place
with the franchises they represent. This arrangement reveals an obvious conflict
of interest (from the franchise investor perspective) that you should be aware
of. Most Franchise Consultants providing free consulting services are really
third party sales men or women working for the franchises they represent.
Therefore, there is a strong possibility that your Franchise Consultant may not
voluntarily make you aware of any potential negative information or publicity
on the companies they present to you.
Knowing this, you
should now fully understand that the onus of fully vetting any and all
franchise or business opportunities that you are considering is totally your
responsibility. Don't assume that the companies you have been presented are all
good companies just because they were presented by a Franchise Consultant.
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