So, you’re scrolling through franchise opportunities online, and you keep seeing this term – “franchise consultant.” Maybe someone even told you that you should hire one before investing your hard-earned money.
But here’s what you’re probably wondering: What do these people actually do? Are they just salespeople in disguise? And most importantly – do you really need to pay someone to help you choose a franchise?
Let me give you the honest answer. I’ve been doing this for 15+ years now, and I’ve seen both sides – people who hired consultants and succeeded, and people who went solo and… well, let’s just say some of them wish they’d asked for help.
What a Franchise Consultant Actually Does (No Fluff)
Look, I’m not going to give you some corporate definition. Let me tell you what I actually do when someone comes to me wanting to buy a franchise.
They Figure Out What You Can Actually Afford
This is the first thing, and it’s way more important than people think.
Someone will come to me and say, “I have ₹15 lakhs. Show me franchises I can buy.”
And I have to be the bad guy who tells them – “With ₹15 lakhs, you can’t buy much that’s actually worth it.”
Why? Because that ₹15 lakhs might cover the franchise fee, but what about:
- Setting up the actual outlet (₹10-25 lakhs depending on the business)
- First 2-3 months of inventory (₹3-5 lakhs minimum)
- Working capital for the first 6 months when you’re not profitable yet (₹8-10 lakhs)
- All the small stuff nobody tells you about – licenses, legal fees, security deposits (₹2-3 lakhs)
A good consultant does the math with you upfront. Not the dream numbers the franchisor shows you. Real numbers.
They Match You with Franchises That Actually Fit Your Life
This isn’t just about money. It’s about your life.
I had a client last year – software engineer in Bangalore, wanted to quit his job and buy a food franchise. Sounded great until I asked him: “Do you want to wake up at 5 AM every day? Because that’s what running a breakfast cafe means.”
He’d never thought about that. He just liked the brand.
A franchise consultant asks you the uncomfortable questions:
- How many hours can you actually work? (Be honest – not “I’ll work 24/7” but realistically)
- Are you okay with weekend work? Most retail franchises need you there on Saturdays and Sundays
- Do you want to be hands-on or hire a manager? (This changes EVERYTHING about which franchise you should pick)
- What does your family think? (Your spouse’s opinion matters – trust me on this)
- Where do you want to open this? Not every franchise works in every city
They Do the Background Check You Won’t Do
Here’s the thing – you’re excited about the brand. You love their products. You think it’s a great opportunity.
But did you check:
- How many franchises they’ve closed in the last 2 years?
- What existing franchisees actually say about them? (Not the 2-3 references they give you – the ones they DON’T want you to talk to)
- Whether their parent company is financially stable?
- If there are any legal disputes with franchisees?
- What the real average revenue is? (Not the “projected” numbers in the brochure)
This is where a consultant earns their fee. We have connections. We know people in the industry. I can call up someone who runs the same franchise in another city and get the real story.
Last month, I stopped a client from investing ₹25 lakhs in a fitness franchise. Why? Because I found out they’d closed 8 out of 15 locations in the last year. The company was still taking on new franchisees, showing great projections, acting like everything was fine. But the numbers told a different story.
They Negotiate on Your Behalf
Most people don’t know this – but a lot of things in a franchise agreement are negotiable.
Not the franchise fee usually (though sometimes even that). But things like:
- Royalty percentage (I’ve gotten this reduced from 8% to 6% for clients with strong locations)
- Territory exclusivity (super important – you don’t want them opening another outlet 2 km away from yours)
- Marketing fee contribution
- Equipment purchase terms
- Renewal terms
A first-time franchise buyer doesn’t know what to negotiate. They just sign whatever agreement the franchisor puts in front of them.
A consultant knows where there’s room to negotiate and how to push without pissing off the franchisor.
What They DON’T Do (Let’s Be Clear)
A franchise consultant is not:
A miracle worker – If you have ₹5 lakhs and want to buy a Domino’s franchise (which costs crores), we can’t make that happen. We work with reality.
A loan arranger – Some consultants help connect you with banks and financial institutions, but we’re not going to get you a loan if your financials don’t support it. Banks have their own criteria.
Your business manager – Once you buy the franchise, you’re running it. We can guide you through the initial setup, but we’re not going to manage your daily operations.
Magicians who guarantee success – I’ve had people ask me “If I invest in this franchise, will I definitely make money?” Nobody can guarantee that. We can show you what’s likely based on data, but business always has risk.
The Real Cost (Because I Know You’re Wondering)
Franchise consultants in India typically charge in one of these ways:
Free (Commission-Based) Some consultants don’t charge you anything. They get paid by the franchisor when you sign up.
Is this bad? Not necessarily. But you should know about potential conflicts of interest. If they make more commission from Brand A than Brand B, which one do you think they’ll push?
I’m not saying all commission-based consultants are dishonest – many are great. Just go in with your eyes open.
Fixed Fee Usually ₹25,000 to ₹1,50,000 depending on the consultant’s experience and the complexity of your requirement.
This is what I prefer because there’s no conflict of interest. I get paid the same whether you buy a ₹10 lakh franchise or a ₹50 lakh one. My only job is to find you the right fit.
Hybrid Model Some charge a smaller upfront fee plus success-based payment when you finalize a franchise.
Retainer For bigger investors or people looking at multiple franchises, some consultants work on monthly retainer.
Do You Actually Need One?
Honest answer? It depends.
You probably DON’T need a consultant if:
- You’re already in the industry you’re franchising in (e.g., you worked in a cafe and now want to buy a cafe franchise)
- You have time to do months of research yourself
- You personally know several franchisees in the brand you’re considering
- You have a lawyer who understands franchise agreements well
- You’re buying from a super-established brand with hundreds of outlets and years of track record
You probably DO need a consultant if:
- This is your first time buying any business
- You’re switching careers (corporate job to business ownership)
- You’re investing a significant chunk of your savings (₹20 lakhs+)
- You’re looking at newer franchise brands with limited track record
- You don’t have time to visit multiple franchise outlets across cities
- You want to compare 4-5 different franchise options
- You’re an NRI or based outside India and don’t know the local market well
How to Pick a Good Consultant (If You Decide to Hire One)
Not all franchise consultants are created equal. Here’s what to look for:
Experience in the Indian Market Someone who’s helped people buy franchises in India – not just studied franchise theory in some course. Ask them: How many clients have you worked with? In which cities? Which brands?
No Pressure Sales Tactics If someone is pushing you to sign immediately, offering “limited time discounts,” creating fake urgency – run. Good consultants give you time to think. This is a major decision.
Transparent About Their Fee Structure They should tell you upfront how they get paid. If they’re vague about this, that’s a red flag.
Willing to Share Client References Can they connect you with 2-3 people they’ve helped in the past year? If not, why not?
Industry Connections Do they actually know people in the franchise industry? Can they get you meetings with franchisors? Can they connect you with existing franchisees?
Honest About Limitations A good consultant will tell you when a franchise is not right for you, even if it means losing business. I’ve turned away clients because I genuinely thought franchising wasn’t the right path for them.
Real Example: How a Consultant Helped (or Could Have)
Let me share two stories.
Story 1: Where a Consultant Helped
Priya came to me wanting to buy a preschool franchise in Pune. She had ₹30 lakhs to invest, loved kids, seemed perfect.
But when we talked more, I found out:
- She’d never run a business before
- She had a 2-year-old at home
- Her husband traveled a lot for work
A preschool franchise means you’re basically running the school. You need to be there 9 AM to 6 PM, five days a week minimum. Parent meetings, staff issues, curriculum planning – it’s a full-time, hands-on business.
I asked her: “Who’s going to watch your daughter while you’re at the preschool full-time?”
She hadn’t thought about that.
We ended up finding her a different education franchise – online tutoring support center. She could hire 2-3 teachers, oversee operations, but didn’t need to be physically present 8 hours a day. She’s been running it successfully for 2 years now.
Story 2: Where NOT Having a Consultant Cost Someone
A friend of a friend (let’s call him Raj) bought a gym franchise in Delhi without any consultation. He just walked into a franchise expo, loved the pitch, signed up.
₹35 lakhs invested. The franchise fee was ₹8 lakhs, and the rest went into equipment and setup.
Three problems he didn’t know about:
- The territory agreement was weak – the same franchisor opened another gym 3 km away six months later
- The equipment they made him buy was overpriced – he could’ve gotten similar quality for 30% less elsewhere
- The franchisor promised “marketing support” but that meant they’d post on their Instagram sometimes. That’s it.
He struggled for 18 months and finally sold the franchise at a loss.
Could a consultant have prevented this? Honestly, probably yes. A good consultant would have:
- Negotiated better territory exclusivity
- Reviewed the equipment costs
- Clarified exactly what “marketing support” meant in writing
The Bottom Line
Here’s what I tell everyone who asks me about franchise consultants:
Hiring a consultant is like hiring a lawyer or a CA. You don’t NEED one for everything, but for big, complex, risky stuff? It’s usually worth it.
Buying a franchise is not like buying a car where you can test drive it and return it if you don’t like it. Once you sign that agreement and pay the fee, you’re in. If it’s the wrong franchise, you’ll realize it 6 months later when you’re losing money every month.
A consultant’s job is to help you avoid that expensive mistake.
Is every consultant worth hiring? No. Some are genuinely just salespeople pushing whatever franchise pays them the best commission.
But a good franchise consultant? They’re worth their weight in gold. Because the cost of choosing the wrong franchise is way, way more than the consultant’s fee.
Want to Know If You Need a Consultant?
Look, I’m obviously biased – this is literally what I do for a living. But let me give you a simple test:
Answer these honestly:
- Do you know exactly which franchise you want, or are you confused between multiple options?
- Have you personally visited at least 5-6 outlets of the franchise you’re considering?
- Have you talked to franchisees who’ve been running for 2+ years (not just the brand-new ones)?
- Do you understand the franchise agreement completely, including the exit clauses?
- Have you verified that the franchisor’s claims about revenue and profitability match reality?
- Do you know what your total investment will be (not just franchise fee)?
- Are you 100% confident this franchise fits your lifestyle, skills, and location?
If you answered “no” to more than 3 of these questions – you probably need help.
And that help doesn’t have to be a paid consultant necessarily. It could be:
- A mentor who’s been in franchising
- A detailed research phase where you spend 2-3 months doing all this yourself
- A lawyer who specializes in franchise agreements
- Or yes, a franchise consultant
The point is – don’t go into this blind. ₹20-40 lakhs is too much money to invest based on a fancy brochure and a smooth-talking salesperson.
Want to talk about your specific situation? Whether you need a consultant or not, I’m happy to point you in the right direction. No pressure, no immediate sales pitch – just an honest conversation about whether franchising makes sense for you.
Because at the end of the day, my job isn’t to get you into ANY franchise. It’s to get you into the RIGHT franchise. Or tell you if franchising isn’t right for you at all.
That’s what a good consultant does.