Over the years I have been involved in the franchise industry, I’ve often questioned whether ‘franchise consultants’ were really consultants.

Whether they are or not, there are 46 listed on the Franchise Council of Australia’s website. So, regardless of my opinion, some people view ‘franchise consultants’ as consultants. For them to have survived, someone has to be using them.

For this article, I grudgingly accept that ‘franchise consultants’ are consultants and that there are Australians using their services.

How can aspiring franchisors choose among the 46 listed FCA ‘franchise consultants’ and other non listed consultants? Why is it important for them to choose the right ‘franchise consultant’?

If they don’t, they may end up with a Maurice Rousetty, who in a recent Melbourne Age article was described as “founder of the Melbourne accounting firm Rousetty & Co, which specialised in the franchising sector…”. Mr Rousetty pleaded guilty to 49 charges that yielded him $18.3 million gross.

To enhance his image, and convince punters believe they were doing business with a very successful businessman, Mr Rousetty drove a $300,000 Mercedes, wore Armani suits and left $500 tips in restaurants.

To the best of my knowledge, the FCA doesn’t check out the ‘franchise consultants’ listed on its website, e.g., N2N Group, a Rousetty company, is still listed. Also, at least some ‘franchise consultants’ are failed franchisors.

Here are some questions to ask a ‘franchise consulting’ company:

* What successful franchises have you developed? Please identify the people and brands with whom you worked.

* How many franchise programs have you developed?

* Have your clients, you or your company been involved in litigation? If so, what was it?

* What franchise programs have you developed that didn’t work? Why didn’t they work? ‘Franchise consultants’ that haven’t had any failures are either new to the business or liars. Even your eminent correspondent had failures (of course they weren’t my fault).

* Who will be working on my assignment? What are their qualifications and experience? Whom can I call to check on them?

* What is your hourly charge out rate and how do you charge if you overrun quoted hours?

* How are expenses charged?

* What legal firm do you use in preparing the franchise agreement and franchise code documentation?

* How can I terminate your consultancy?

Finally: ‘franchise consultants’ are usually good salespeople. So check out their body language and the words they use.