Q&A with Rick Bisio, Founder of The Educated Franchisee

Posted on October 03, 2011 by Ben Baggett

Rick Bisio, Founder of The Educated Franchisee recently sat down with Franchise Gator and told us a little more about his company:

What is a franchise consultant/broker?

A Franchise Consultant is a person that assists a prospective franchisee identify and investigate franchise systems.  A high quality franchise consultant will have at least five years of practical franchising experience and would ideally have experience both on the franchisor and franchisee side of the equation.

What are the pros and cons of using a consultant?

The Pros of using a franchise consultant revolve around time and focus.  A high quality franchise consultant will provide you with the guidance and advice needed to quickly and effectively define what type of franchise system would be the best fit for you.  They will also identify viable alternatives and support the prospective franchisee throughout the discovery process making sure that the each aspect of the business is fully explored.

Many people believe that the con to working with a franchise consultant is that they do not work with every franchise system under the sun.  Personally, I think that is a 'pro'.  There are thousands of franchise systems and some are simply not worth looking at.   The real 'con' when it comes to franchise consultants is the lack of consistency. There are no standards when it comes to experience or background.  As a result, some franchise consultants are great and others are simply pitiful.

How do I find a good consultant?  What questions should I ask?

First, the consultant should have a minimum of 5 years of practical franchising experience PRIOR to becoming a consultant.

Second, ask to see their bio. The consultant should have a proven track record of success in franchising and in related activities.

Third, Google their name.  If it is a common name, Google the name along with the word 'Franchise'.  You should be able to find a lot of information on the consultant this way.  By the way, the website that the consultant sets up to promote themselves does not count as information – that's marketing. 

Once you know that the person has the experience base to add value to your investigation, you need to make sure you like the person. Do you think the person will always have your best interest in mind?  Can you speak openly and honestly with each other?  Do you trust them?

How does a consultant get paid?

The service that a franchise consultant provides should be completely free to the prospective franchisee.  A franchise consultant is similar to an executive recruiter or a buyer agent in a real estate transaction.  They receive financial compensation from the 'seller' only if they are successful.  The seller, in this case a franchisor, shares part of the franchise fee with the franchise consultant if a new franchise relationship is formed.  There should be no cost, or obligation, to the prospective franchisee.  In short, the Franchise Consultant only gets paid if they are able to find the right business for the right person.

How do I ensure that the consultant is making recommendations that are best for me?

During the course of the interview process, the franchise consultant should have learned enough about you to factually know what you are looking for.  When the consultant recommends franchise companies to you, there should be factual reasons that link the franchise recommendations back to your wants, needs and desires.  If you are not sure why a company was recommended to you, ask the franchise consultation to connect the dots for you.

 What qualities do you think make a good franchisee?

A good franchisee has the ability to both lead and follow.  First, a franchisee must be the leader of their business.  They must have the ability to set a vision, get buy in from their employees and stay focused on success.  Every day they get out of bed knowing that the buck stops with them. At the same time, the franchisee needs to be willing to follow a proven, successful operation system.  Big egos don't always work in franchising.  A franchisee needs to respect the fact that others have gone before them and value the accumulated knowledge found within the organization. 

What is your favorite advice for new franchisees to help them succeed?

Remember what you are buying.  You are buying 'the right to use the franchisor's operating system'.  So, when you do your due diligence make sure the system works.  A franchise system should predictably reduce your business risk. Make sure the system does that BEFORE joining the franchise system.  Then, once you become a franchisee, follow the operating system.  That is where the value lies.  That is what you bought.  So use it, learn it follow it.

What would you tell potential franchisees that may be nervous about the financial burdens of starting a franchise?

I would agree that there are financial (and emotional) risks when you chose to invest in yourself.  There is the chance that you will not be a good business owner, that you will not be willing to do what is necessary to be successful.  At the same time, remember that only road the true financial success is business ownership.  The Millionaire Mind by Thomas Stanley shows that the vast majority of financially successful people own their own businesses.  The real question is whether you trust yourself enough to invest in yourself.  If so, then you are making the right financial investment.

What was your background and experience?

20 Years in Franchising

10 years in Franchise Consulting

Director level experience in the Popeyes Chicken and Biscuits, Churches Chicken, Seattle's Best Coffee and Cinnabon franchise systems.

Vice President experience at Environmental Biotech franchise systems

Franchisee experience in Action Coach and Snap Fitness

Author of the best selling franchise book – The Educated Franchisee.  Also written The Franchisee Workbook and A Glossary of Franchise Terms

Speaker at many franchising events

Formerly owned an import/export business.

BSBA – Washington University (Business); MBA/MIM – The American Graduate School of International Business (AKA – Thunderbird)

Father of two 

Do you have any franchisee testimonials or success stories that you would like to share?

Over the past decade, I have worked with thousands of prospective franchisees assisting each individual throughout the exploration process.  It has been exceptionally rewarding. However, as a matter of professional courtesy, I do not provide the names of the people that I have worked with.  If you would like to learn more about me, I would suggest that you 'Google' my name.  The first 15 pages of listing are about me.  In addition, read my books.  Finally, give me a call.  I would be happy to answer your questions.