Franchise Glossary
Franchise Broker
What is Franchise Broker in franchising?
An independent professional who connects franchisors with prospective buyers and earns a commission, typically 40 to 50 percent of the franchise fee, paid by the franchisor when a deal closes. Many brokers present themselves as franchise consultants or advisors, but their compensation comes from the franchisor. This means they can only present brands they have commission relationships with and have a financial incentive to close a sale. Brokers can be genuinely helpful in narrowing options, but supplement their recommendations with your own independent research.