Consulting Franchise Opportunities

What is a consulting franchise?

A consulting franchise is a ready-made business offering expert advice to other businesses. This might be focused on a particular area, such as HR, marketing or IT, or take a more holistic, coaching approach. It’s about understanding what makes a firm tick; looking under the bonnet and seeing where fine-tuning (or something more drastic!) could improve performance.

“A consultancy franchise allows people to leverage the experience they’ve built up over the years to build a business... using a lot of the skill sets they’ve got and relationships they might have already. You operate within what feels like a corporate structure, but without the pressures of corporate life,” explains David Paulson, global franchise development manager at ERA Group.

For Yorkshireman Bill Squires, the idea of stepping away from corporate constraints was definitely a factor in his decision to become an ActionCOACH franchisee. “I’d spent the previous 18-20 years travelling up and down the UK, spending two nights a week or more away from home. I wanted to come back and do something where I could add some value into businesses in the local area,” he says.

Who is the ideal consulting franchisee?

Consulting franchises aren’t a one-size-fits-all proposition. It’s important for any would-be investor to take time scoping out the various models on offer, to find the right fit for their particular set of skills and experience.

For example, David Paulson is clear that an ERA franchise is somewhat niche within the sector. “We’re looking for people with a strong business background – usually sales directors, operations directors, CFOs,” he points out. “It’s not a model for someone straight out of uni or early in their career.”

Bill Squires’ perspective is slightly different. He did come to ActionCOACH with significant business and coaching experience, but insists that what really matters when it comes to making a success of consultancy is a genuine desire to help other people succeed.

“If you’re doing it for yourself, I’d be wary,” he warns. “You have to be passionate about the coaching game – and you have to be good at marketing, because if you're not, it won't work.”

Why choose a franchise at all?

There’s no doubt that starting a business consultancy firm from scratch – and making a success of it – is perfectly possible. Choosing the consultancy franchise route, however, has several compelling advantages.

For Bill from ActionCOACH, chief among these was avoiding isolation. “Could I have done this on my own? Yes,” he says. “But I’m a team player. I want to have the ability to bounce ideas off others - it can be very lonely in business on your own.”

Then there is the added value of a brand that potential clients can recognise and trust, as well as an instant network of peers with whom they can collaborate and consult. “Franchisees joining us today have got an immensely proven track record of a business behind them,” observes David from ERA Group. “They’re not pitching themselves as individuals – they’re part of a global network.”

“We’re a very collegiate group of individuals... If you ask for help, you’ll be inundated,” agrees Bill.

On top of this, the B2B focus of consultancy franchises generally means high-value contracts, repeat business, low overheads and enormous flexibility.

Businesses want results, and they want them fast. Technical advances, including the dizzying pace and transformational potential of AI development, are changing the way consultants work. It’s a genuinely exciting time to get involved.

What to look for in a consulting franchise opportunity

As with any franchising opportunity, before you invest it’s important to understand the offer as fully as possible. Key questions to ask include:

• What is the onboarding process, and how much training is provided?
• How comprehensive is the ongoing support?
• What is likely to be required by way of working capital?
• How are clients sourced, and are there protected territories?
• Who manages the marketing?
• Are there peer networks or mentoring systems?

Anyone who imagines that running a successful consulting franchise is simply a case of throwing money at a proposition, then sitting back and letting the brand, systems and processes get on with it is seriously missing the point.

What you get out is going to depend very much on what you put in, in terms of both effort and enthusiasm. However, the quality and quantity of training available will make a huge difference, too.

Support and development

“At ERA, we offer three weeks of training, followed by a six‑month mentoring programme,” explains David Paulson. “We've got a marketing team, field support, and two country managers who support franchisees through setup and scaling.”

“The support and development you get as an ActionCOACH franchisee is continual,” confirms Bill Squires. “There’s more available than I’ve got time to take up!”

It’s also wise to check how forward-looking any brand is from a technology perspective. There’s no doubt that AI is a game-changer. Consultants who aren’t making the most of its potential are in danger of falling far behind.

“AI is never going to replace what the franchisee does,” insists David. “People are our biggest asset. But we’re investing in technology that will make them far more efficient (with spend analysis, for example) and enable them to stand out in the marketplace.”

What kind of return can you expect?

Compared with franchises in some other sectors, such as fast food or fitness, the initial investment for consultancy franchise tends to be relatively low. There’s little equipment needed, and whilst many franchisees prefer to have an office, working from home is easily managed.

As long as you can find the clients, and are working with proven processes, you should be looking at a healthy ROI within a reasonably short time frame.

“Franchisees can build significant businesses,” confirms David Paulson. “In fact, at our annual awards we’ve had to introduce a new category, for franchisees turning over in excess of two million. We went for Platinum Plus in the end, because we’d run out of precious metals!”

Profits in year two

For some franchisees, flexible working and a great work/life balance will be more important than an impressive turnover (not that the two are mutually exclusive). When Bill Squires was starting out with ActionCOACH, he had a clear vision of what he wanted his working life to look like: coaching for three days a week, with Monday either for resting or planning – and finishing at lunchtime on Friday.

“I went into profit in year two,” he says. “I could have done it quicker - but that was my pace, and my choice.”

Expectations and guarantees vary across franchises. ERA runs a success-based model, with franchisees earning 50% of the savings they generate for clients over a three-year period. This kind of ‘no win, no fee’ approach is beneficial for franchisees and the businesses they serve alike.

Meanwhile, the ActionCOACH website suggests “guaranteed earnings of at least £10,000 a month within your first six months of operation”. However, this involves choosing to work at a rate that wouldn’t have suited Bill, for example. Naturally, a conditional guarantee is no substitute for due diligence.

Is a consulting franchise right for you?

For the right person, a consulting franchise isn’t just a business opportunity; it’s a chance to work in a role that makes a real difference. Your success is literally measured by how successful you make others. The impact you can have is immediate and meaningful.

Yes, there are fantastic financial rewards to be gained, if that’s what you want. However, what you stand to gain on a personal level can be just as significant, if not even more so. As Bill Squires puts it: “I love helping other people to grow their business and have the life they want. For me, that is so satisfying, it's untrue.”

You have to be a people person – finding clients and building deep, trusting relationships is a huge part of the process. You have to be willing to learn and grow, regardless of how long you’ve been in the corporate world, or how many businesses you’ve built and sold in your career.

Confidence and humility are equally important; you need to trust the processes you are buying into, and follow them meticulously. And you need to be prepared to put the work in, especially at the beginning.

A smart way to be your own boss

With all that in place, franchising gives you the powerful combination of freedom to work on your own terms, backed by proven expertise, effective training and a supportive network of fellow entrepreneurs, keen to share their learning and experiences.

And at a time when businesses are under more pressure than ever to adapt to new technology and a volatile and uncertain economic and geopolitical landscape, there’s no shortage of demand for sharp thinking and practical solutions.

Consultancy has always been about solving problems – but right now, the problems are bigger, messier and more tech-driven than ever. That’s great news for franchisees.

Success won’t come overnight. But if you’re driven, curious and love helping others succeed, a consulting franchise is a great way to do business.

If you're interested in buying a consulting franchise, browse our wide range of franchise opportunities. You can also look at business franchises, recruitment franchises and web franchises.