Franchise Consulting Is On The Rise!
The franchise consulting business dates back to the late 1990’s – early 2,000’s and has grown tremendously ever since. 2022 – 2023 has been the most explosive growth year ever for the franchise consulting business. Here are some interesting stats.
There are more franchise consultants than ever in 2023. What started as an industry of less than 200 consultants in the year 2000 there are now more than 2,000 franchise brokers and consultants in the US alone. Franchise consulting offers a lucrative work from home business opportunity that can be done full time or part time making it an appealing business for more and more Americans.
More franchisors rely on consultants than ever. In its early stages only about 100 franchisors adopted the use of franchise consultants to assist with their growth while today over 600 franchisors utilize the services of consultants and brokers. Despite having to pay hefty commissions to consultants, franchisors are saving a lot of marketing dollars and time weeding out the unqualified prospects and tire kickers. In fact, a potential franchisee introduced by a franchise consultant was 5 times as likely to proceed as any other marketing method used by franchisors.
More investors are turning to consultants than ever. In the early stages few people even knew what a franchise consultant was, much less the value they offered their clients and were often seen as mere middlemen in the process. Today more people than ever often start their franchise exploration process through a consultant vs attempting all the research on their own.
Franchise consultants played a stronger role in franchise growth in 2023 than ever. Each year franchise consultants have played a stronger and stronger role in contributing to a franchisor’s growth. In fact there are many franchisors today that rely strictly on franchise brokers and consultants for their growth.
Earnings for franchise consultants is at an all-time high. In the early stages a franchise consultant could earn anywhere from $5,000 – $10,000 per placement. Today consultants earn an average of $25,000 per placement with many franchisors paying $30,000 – $40,000 per placement. Multiple unit placements can easily exceed $50,000.