Don Daszkowski is the Founder of IFPG. IFPG trains individuals to become Certified Franchise Consultants and earn money selling franchises.
Addressing Discrimination in the Workplace
Despite laws meant to prevent discrimination at work, inequality still exists. For example, in 2020, more than 21,000 complaints about sex-based discrimination were filed with the U.S. Equal Employment Opportunity Commission (EEOC). A survey by Glassdoor found that 42% of American workers had witnessed or experienced racism at work. A Gallup poll from January 2021 revealed that about 25% of Black and Hispanic employees had faced discrimination in the workplace within the past year. Additionally, the EEOC received over 14,000 complaints about age discrimination in 2020.
The Franchise Industry’s Response to Discrimination
The franchise industry is actively working to address these issues. Organizations like the International Franchise Association (IFA) have established groups to promote diversity and inclusion. For instance, the IFA launched the Franchising Pride Council in 2019 and the Black Franchise Leadership Council in 2021. The latter focuses on increasing business ownership among Black entrepreneurs and building generational wealth. A 2018 report by the IFA, based on 2012 Census data, highlighted a 50% increase in minority ownership of franchise businesses since 2007.
Opportunities in Franchise Consulting
Franchising offers great opportunities not only for potential franchise owners but also for those who guide them, such as franchise consultants. Franchise consultants play a crucial role in educating aspiring business owners about the various aspects of franchise ownership. This career can be particularly rewarding for people in different life situations. For example, parents can work part-time while their kids are in school, people with disabilities can work from home, and older adults with years of work experience can connect well with potential franchisees who are looking to become their own bosses.
Franchise consulting is an excellent second career option for those seeking a change, perhaps due to job burnout. Helping someone become an entrepreneur can be very fulfilling. The process usually begins with the franchise consultant assessing whether the candidate is suited for franchise ownership. If the candidate is a good fit, the consultant then helps them find a franchise that aligns with their skills, needs, and financial situation. It’s essential for the franchise consultant to act ethically, always prioritizing the best interests of the client. They guide the client through the process, helping them explore franchise opportunities that are likely to be successful.
What It Takes to Be a Successful Franchise Consultant
To excel as a franchise consultant, one must constantly stay informed about the latest developments in the franchise industry. This includes understanding changes in franchise costs, operational processes, and financial stability. Consultants should also keep up with new franchises entering the market. This requires regular research, such as reading publications like The Wall Street Journal, Bloomberg, and industry-specific magazines. However, networking and attending industry events are even more critical. These interactions allow franchise consultants to deepen their understanding of different franchise brands and what they expect from their franchisees.
In their day-to-day work, franchise consultants must carefully evaluate each potential franchisee. This involves understanding the candidate’s preferences, financial limitations, personality, and motivations. Such insights help the consultant match the candidate with a franchise that fits their goals, whether they want more creative freedom, the possibility of multi-unit ownership, or absentee ownership. Some candidates might just want to replace their current job with franchise ownership, while others might not be suitable for business ownership at all. For instance, someone who is very risk-averse might not be cut out for the responsibilities of owning a franchise. Likewise, candidates who are unwilling to follow a franchise’s established systems for suppliers, branding, operations, and services might not be a good fit.
Once the right franchise is identified, financing often becomes the next hurdle. This is where the franchise consultant’s industry knowledge and connections are invaluable. They can guide clients to funding sources, such as Small Business Administration (SBA) loans or reputable private lenders. Specialized lenders who understand the franchise industry can often speed up the financing process, helping new franchisees get their businesses up and running more quickly.
The Impact of Franchise Consultants
Franchise consultants can greatly influence their success by the effort they put into their work. They fill a vital knowledge gap in the U.S. economy, where franchise businesses employed around 8.43 million people in 2019, according to Statista. There are many misconceptions about franchises, including the belief that franchises are mostly fast-food restaurants. In reality, franchises cover a wide range of industries, from cleaning services and home renovations to beauty treatments, optical services, and vacation rentals.
Another common misconception is the cost of starting a franchise. Many franchise opportunities require a relatively modest investment in the low five figures, and even these amounts can often be financed. Franchise consultants can help clients understand these costs and assist them in securing the necessary funding.
At the end of the process, when a franchise deal is finalized, franchise consultants can take pride in knowing they’ve helped someone achieve their dream of business ownership. The franchise industry is a significant contributor to the U.S. economy, with the IFA and FRANdata predicting that it could add $477 billion to the GDP in 2021. By guiding new franchisees, franchise consultants play a crucial role in this dynamic and growing industry.
