Franchising: how to choose development consultants

Turning an existing business into a franchise network often requires outside help. The aim, however, is not to buy a generic ‘development package’. It is to commission specific work from the right professionals and receive tools you can actually use. Building a responsible presence in the franchise community means choosing consultants as carefully as you would any major business partner.

1. Define the project before requesting proposals

Before meeting consultants, prepare a short description of your business: what you sell, which outlets are operating, who manages day-to-day operations and what information you have documented. Explain what is missing, too. Organising procedures that are already documented is a different task from recording practices known only to the founder.

Divide the brief into distinct areas:

• Business planning and assessment of the expansion model.
• Financial analysis, costing and tax planning.
• Documentation of operating procedures and planning for the transfer of know-how.
• Legal review, contractual documents and trade mark matters.
• Franchisee recruitment planning, if this is a separate requirement.

Ask each prospective consultant to state which areas they will cover, which they exclude and who will carry out each part. A single proposal does not mean one person has all the expertise required. Appoint a project lead within your own business as well, so that questions, approvals and information are handled consistently.

2. Check experience and professional boundaries

Look beyond presentations showcasing networks that have expanded quickly. Ask exactly what work the consultant carried out, at what stage they were involved and which deliverables were used in practice. Request client references with the clients’ consent, along with anonymised samples that do not disclose another business’s know-how.

One useful question is: ‘What finding would lead you to recommend postponing expansion?’ The answer will indicate whether the consultant genuinely assesses the business or simply sells a standard package. Also ask how they would deal with incomplete financial data or procedures that are not applied consistently.

Greece has no dedicated law governing franchising as a whole, nor a general mandatory system for registering franchise networks or providing standardised pre-contractual disclosure specifically for franchising. Applicable rules include the general provisions of the Greek Civil Code on contracts and good faith, including pre-contractual liability under Articles 197–198, as well as Greek and EU competition law. Trade marks are governed by Law 4679/2020 and, for European Union trade marks, the relevant EU regulation.

A consultant’s commercial experience therefore does not replace a lawyer’s review. Equally, financial assumptions need to be checked by an appropriately qualified finance or accounting professional. No consultancy package, in itself, constitutes government approval of the network.

3. Agree deliverables you can assess

The consultancy agreement should describe outcomes, not just activities. Wording such as ‘strategy meetings will be held’ does not explain what you will receive. Favour clear descriptions, such as a financial model with editable assumptions, a findings report or a set of draft procedures identifying who is responsible for implementation.

For each deliverable, agree:

• What data you will provide and by when.
• Which file format will be supplied and whether you will be able to edit it.
• Who will check its operational, financial or legal accuracy.
• How many rounds of revisions are included and what counts as additional work.
• How acceptance or the need for revision will be recorded.

For example, a cost schedule without sources and assumptions is not enough to support decisions. Ask for actual business data to be clearly distinguished from the consultant’s estimates. Also include a consistency check across documents: a service costed in the financial plan should not be missing from the description of the franchise arrangement.

4. Clarify fees, interests and handover arrangements

Separate the fee for preparing the network from any franchisee recruitment fees. If a success fee is proposed, define precisely what triggers it and what happens if the relationship with the prospective franchisee does not proceed. Avoid terms that leave it unclear whether payment is due for a simple introduction or a completed agreement.

Request written disclosure of referral commissions or financial relationships with recommended suppliers. Such a relationship does not automatically make a recommendation unsuitable, but you should know about it before making a decision.

Also agree terms covering confidentiality, access to business information and rights to use the deliverables. Clarify whether you may modify them and share them with your franchisees. Specify what will be handed over and how fees will be settled if the engagement ends early.

Practical takeaway: before choosing a consultant, compare proposals against the same written project brief. Buy properly documented work with clear accountability and results you can assess, rather than a promise of rapid expansion.