The Certified Franchise Advisor Helps You Navigate the Franchise Process to a Path of Wealth Creation

The world of franchising can be a mysterious labyrinth for those seeking to invest in a franchise. Even with the internet as a resource, there is misinformation, contradictory statements, and a lack of practical financial analysis. Here a list of questions of which you should know the details prior to investing in a franchise:

•                     Which Industry should I choose and what is the strength of the industry?

•                     What locations are available?

•                     What is the demand for the product or service?

•                     How sound is the brand regarding the reputation in the marketplace and financial performance.

•                     Is the brand investment grade?

•                     What is the timeline for breaking even on your initial investment?

•                     What are the average profit margins?

•                     What are the upfront and recurring costs?

•                     What is the competition currently and projection in the future.

•                     What is the potential growth of the brand and industry?

•                     Are there any litigations?

•                     Do I have the precise qualifications and skill set for the brand?

•                     What is the scope of the support and training the brand provides?

•                     What type of marketing does the brand provide?

•                     Do I want to be, and which brands offer the options of being, an Owner/Operator, a Manager, a Chief Executive Officer, a Semi-Absentee Owner, or an Absentee owner?

•                     Do I want a glamorous, prestigious type of franchise or is the main emphasis on one that has a high return on the investment?

•                     Am I seeking a franchise investment to replace my income, or do I want a model for wealth creation?

•                     Does my background, and preferences match the criteria for success in the brand?

•                     What is your time for opening your business and does the model fit the time limit?

•                     Am I most interested in a home based, mobile or retail-based franchise?

·                 What is my exit strategy?

•                     Does my desired range of investment, my liquidity, and net worth fit the financial requirements of the brand?

•                     Have you given any thought to how you might fund your franchise investment and what are the options?

•                     What is a Franchise Disclosure Document?

•                     How and when can I speak with current franchise owners commonly referred to “franchisees” in the industry?

•                     Is the “Discovery Day” at the brand’s headquarters, or is part or all conducted via a virtual call?

•                     Should I have an attorney review all the documents before signing the franchise agreement?

•                     There are still additional questions to be addressed prior to investing in a franchise.

As one can see, the amount of data and facts one needs to make an informed decision can seem to be overwhelming. As Jeff Cheatham states in his article “6 Benefits of Working with a Franchise Consultant or Broker” in the Entrepreneur: “Believe it or not, some individuals make a conscious decision to go about finding it all on their own. After all, who knows what kind of business you want to own better than yourself? But the reality is this — there are approximately 3,500 to 4,000 different franchise concepts on the market today, representing dozens of industries and hundreds of business sectors. How confident are you that you can wade through thousands of franchisors and find the perfect fit?” (1.) Brokers and consultants are professional matchmakers.

According to the Federal Trade Commission's Guide to Buying a Franchise, " a broker reviews the amount of money you have and then directs you to opportunities that match your interest and resources" (p.4). Brokers and consultants help educate you about franchises and the investigation process. However, industry brokers and consultants typically are trained to only do prospecting and pre-screening and are discouraged from participating in the process after the introduction.

At the National Franchise Association, we have developed the Certified Franchise Advisor Program. The course is designed and taught by Dr. Robert A. Needham, a seasoned executive with over 35 years of experience as a business and franchise leader, advisor, and innovator. His vast knowledge and expertise, developed through degrees in Mathematics, Computer Science, a Juris Doctor, and a PhD in Business Administration provide a deep wealth of knowledge on instruction and practical application.

What does the Certified Franchise Advisor Course mean for you? When you engage a Certified Franchise Advisor, CFA, they are totally invested in the franchise relationship from introduction to closing, participating in the process, and investing more time to support and guide you through the maze.

Here are the advantages of partnering with a Certified Franchise Advisor:

•              Focus is on wealth creation and sustainable wealth through franchising.

•              Spare you months of research.

•              Help educate you about franchises and the investigation process.

•              Secure the top position with the Franchisor in your area.

•              Provide ongoing assistance and advice throughout the franchise journey.

•              Engaging a CFA means having a highly qualified and professional partner who is invested in the success of the franchisor-franchisee relationship.

•              Educate you on how to perform a financial analysis on each brand and how to read a franchise Disclosure document.

•              Introduce you to lending institutes that specialize in franchise investment funding.

•              Provide a potential franchise investor with a network of resources.

•              Prepare you for every call during each stage of your journey.

•              Saves you time, money, and trouble assisting you to make the right choice that matches your criteria based upon a complete analysis of the brands.

As one can clearly see, there are tremendous advantages of working with a Certified Franchise Advisor. And the great component for you is that the services offered do not cost you any money, just time and commitment to the process. Totally, FREE to you. The Advisors are compensated by the franchise at the close of the sale.

Jeff Cheatham beautifully summarizes the relationship between the potential franchise investor and the franchise advisor as, “In this no-cost, no-obligation relationship, they're your coach and assistant, sharing their accumulated experience and expertise in the form of qualified advice.” (1.)

Our team of highly skilled Certified Franchise Advisors look forward to partnering with you to make your financial dreams become a reality!

Michael G. Bullinger, MBA, CFC, CFA

President of the National Franchise Association

mike@nationalfranchiseassociation.com

www.nationalfranchiseassociation.com

References:

1.)           Entrepreneur. “6 Benefits of Working with a Franchise Consultant or Broker.” Jeff Cheatham; p.1.

https://entm.ag/g6o8dC

2.)           The Federal Trade Commission. "A Consumer's Guide to Buying a Franchise." p.4.