Last week, someone who found me through my YouTube videos asked: What makes a good franchise advisor? If you are thinking about taking control of your future through business ownership, or want to franchising your existing business, here are some things to think about before choosing an advisor to guide you.
There are many “advisors” and “consultants” in the franchise industry. They all bring different levels of experience, skills, and teaching styles. Most can match you with franchisors because that part is simple. The challenge is finding a truly great franchise company that will last, share your values, and operate with the same ethics as you. That takes more than just industry knowledge—it requires time, insight, and commitment. Most advisors are paid by franchise companies when they make a successful match. However, I don’t know of any who are paid for matching people to franchises where top performers have the same strengths and skills as the potential owner. That kind of fit takes extra effort and expertise.
When I bought my first franchise, Maui Wowi Smoothies, I worked with a consultant from FranChoice. That decision turned out to be a great one—I became the top producer of the year and sold the business within five years for a strong profit.
My second franchise was a different story. I chose it on my own, feeling confident that I knew what I was doing. It failed, and I lost a lot of money. That tough experience is what made me a franchise expert. I even wrote a book about it called Franchise Savvy. I’ve been through both the wins and the losses, and I have the scars to prove it.
The right advisor can make the search for a franchise more enjoyable, organized, and less stressful—leading to a better and more thoughtful decision. Since buying a franchise is a major life choice and a big investment, it’s important to get it right. I’ve been through it myself, so you can benefit from my experience. Finding any franchise is easy. Finding the right franchise is the hard part.
Here are some questions to ask a potential franchise advisor, along with my personal answers:
- How long have you been an advisor? (Since 2005.)
- How many placements have you made? (I’ve worked with over 1,500 people across the country.)
- Where and how did you learn and gain experience in franchising? (You already know some of my story.)
- How often do you publish about franchising? (I’ve written two books, co-authored another, and host The Franchise Academy Podcast. I post on blogs and LinkedIn about twice a week. I’ve been quoted in most major newspapers and many online publications.)
- What does “CFE” mean after your name? (It stands for Certified Franchise Executive. It’s a two-year program, and only a small group in the industry earn it. It’s the only recognized certification in franchising. More here: https://www.franchisefoundation.org/programs/certified-franchise-executives)
- Have you owned a franchise yourself? (Yes—two franchises and three independent businesses.)
- Can I see reviews from past clients? (Yes, including from those who didn’t buy a franchise but still benefited from my free service.)
- What advisory network are you part of, and why? (FranChoice. We’re selected based on expertise—you can’t just buy your way in. And we’re not a franchise.)
- Have you taught business or franchise classes? (Yes, I’m a paid speaker on franchising. See www.TomScardaSpeaks.com.)
- Can you share both a success and a less successful placement? (Yes, I have plenty of examples.)
- Would you tell someone not to buy a franchise if it wasn’t right for them? (Yes. I tell about 40% of my clients they’re not a good fit. I’d rather be honest than push them into a bad decision.)
This list is just a starting point. If you’re considering an advisor, make sure you feel confident with their answers.
Finally, ask yourself: Do I want to risk my money with a broker who is still learning the business while advising me?
Research them. Read what they’ve written. See their online presence. I write about this topic—even though it’s my own business—because my goal is simple: you may or may not choose me as your advisor, but I want you to make a smart business decision. That protects you and keeps the franchise industry strong. My mission is to help people avoid the same mistakes I made with my second franchise.
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