7 Common Mistakes to Avoid When
Working with a Franchise Consultant by Mark
Schnurman
Published on: 3/24/25
Hiring a franchise consultant can be a game-changer when selecting and investing in a franchise. Their expertise helps entrepreneurs make informed decisions, saving both time and money However, working with a consultant effectively requires avoiding common mistakes that could lead to costly missteps in franchise investment. Understanding these pitfalls ensures a smoother experience and a better business outcome, as noted by Mark Schnurman.
One of the biggest mistakes is failing to research the consultant’s background and experience. Not all consultants have the same level of expertise or industry knowledge Some may have limited experience or work with a restricted number of franchises Before hiring a consultant, entrepreneurs should verify their credentials, ask for client testimonials, and ensure they have a proven track record in franchise consulting
Another standard error is expecting the consultant to make all the decisions. While franchise consultants provide valuable guidance, the final choice should always belong to the business owner. Entrepreneurs must actively participate in decision-making and carefully review recommendations, financial projections, and franchise agreements before committing
Ignoring personal financial limitations is another major issue. Some entrepreneurs get excited about a franchise opportunity without considering whether they can afford the investment A good consultant will provide financial guidance, but business owners must set realistic budgets and explore financing options to avoid financial strain.
Some individuals work with franchise consultants without clearly communicating their goals and expectations. Without a clear vision, a consultant may recommend opportunities not aligning with the entrepreneur’s long-term objectives Defining business interests, risk tolerance, and financial capabilities is essential to ensure the consultant finds the best match.
Another mistake is relying solely on the consultant’s word without conducting independent research. Business owners should verify information, visit franchise locations, and speak with existing franchisees to get firsthand insights Conducting due diligence ensures the chosen franchise is a good fit beyond just what the consultant suggests
Signing a franchise agreement without fully understanding the legal implications can be costly Some entrepreneurs rush into a deal without carefully reviewing the contract. A franchise consultant can explain the terms, but consulting a legal expert before signing is always recommended
Finally, some franchisees stop seeking guidance after signing the agreement A good franchise consultant offers ongoing support, helping with business operations, marketing, and growth strategies. Staying in touch with the consultant ensures continued success beyond the initial setup
Avoiding these mistakes allows business owners to maximize the benefits of working with a franchise consultant, ensuring they make well-informed decisions, avoid costly missteps, and successfully build a profitable business that remains sustainable in the long run