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The Outsourced Solution

hat does an outsourced franchise solution really look like? What are your roles and responsibilities, and what does is your franchise consultant do for you?

First, it’s important to understand that there is no such thing as one size fits all. Where you are in the lifecycle of a franchisor, what expertise you have in-house, and what type of franchise program you offer will all have bearing on the divisions of labor. If you are just learning how to franchise a business, your franchise consultant will most likely be intimately involved in most of your day to day decisions; what executives to bring on, how to market your franchise, what information should be contained in the FDD, how to use your Operations Manual, and much more. If, however, you are a mature franchise just looking to outsource your sales efforts, your franchise consultant may be less involved in your day to day operations, though they still need to have an excellent understanding of your offering.

Typically, in an out-sourced solution, the roles and responsibilities are clearly defined at the outset. The franchise consultant typically guides this conversation, as they should have the expertise to know what should be outsourced, and what should be kept in-house. Though a devision of labor between the franchise consultant and the franchisor will be agreed upon at the outset, this will also be fluid, as the needs and resources of each company change.

In the end, an outsourced solution is a partnership. Make sure that you partner with the right people, and make sure the terms of the partnership are clearly defined. Learn more about partnering with Franchise Beacon.

Why You should Choose Franchise Beacon as Your Franchise Consultant

hen wondering how to franchise a business, many people will often confuse Franchise Beacon with the types of service that one can expect from Brokers. The truth is that we offer to completely different services.

The primary role of Franchise Brokers is to provide pre-qualified leads to franchisors in return for a commission. Basically the Franchise Broker sends the Franchisor referrals. They do this by talking to the client, finding out what the client’s interests are, and then finding 2-4 concept (out of the 100-200 that the broker represents) that A> fits the client’s needs B> has good validation and C> pays a high commission.

Your relationship with Franchise Beacon will be extremely different. We work with you during the entire franchise sales process, including helping the client understand the franchise opportunity, providing them with franchise information, and helping the franchisor qualify the franchisee and evaluate if they are a good fit for the franchise business. We also help you evaluate where you are spending your advertising dollars to get the most return on your investment. Beacon will never propose multiple franchises to your leads; they are your leads, and they will be shown your concept.

 

Here is a comparison of the roles and responsibilities of a franchise consultant VS a broker.

 

 

Responsibilities

Brokers

Franchise Beacon

Primary function

Provide Qualified Leads

Full Franchise Development.

Number of Concepts Represented

Generally 50 – 200 Concepts

Under 10

Number of concepts an individual broker or salesperson would actively promote

Generally 50 – 200 Concepts

1 – 10

Exclusivity

Generally non-exclusive.  Often, franchisors will have relationships with multiple Brokers.

Generally exclusive.

Reporting obligations

None

Monthly

Contractual obligations

None

yes

Required marketing

None, although they may ask franchisors to attend/sponsor annual conventions

Negotiated levels of marketing expenditure on the part of the franchisor included in most contracts

Fees

Success fees only, with averages ranging between $15,000 and $30,000.  […]