Franchise Glossary
Franchise Broker
What is Franchise Broker in franchising?
An advisor who introduces prospective buyers to franchise brands. In the usual arrangement the service is free to the buyer, and the franchisor pays when a candidate they introduced becomes a franchisee. Brokers often call themselves consultants, advisors, or coaches. The title does not tell you how they work. A useful consultant simplifies the search and explains company culture and the owner's day-to-day role, which franchise marketing usually leaves out. A catalog of brands leaves that sorting to you. Some advisors charge the buyer a fee for their time instead. Ask who pays them before you start, and read the franchise disclosure document either way.
What is the difference between a franchise broker and a franchise consultant?
The titles overlap, and the label tells you very little. In the usual arrangement both are free to you, because the franchisor pays on a placement. The useful difference is the work. A consultant should simplify the search and explain company culture and the owner's day-to-day role, which franchise marketing usually leaves out. A catalog of brands leaves the sorting to you.
Who pays the franchise broker?
In the usual arrangement, the franchisor pays when a candidate the broker introduced becomes a franchisee. The buyer is not invoiced. Some advisors charge the buyer a fee for their time instead. Ask which arrangement you are in before you start.
Does using a broker cost the buyer anything?
Not a fee from you, in the usual arrangement. The franchisor pays on a placement, and what you pay the franchisor is the same if you go to the brand directly. What can change is which brands you see, and whether anyone explains company culture and the owner's week. Read the franchise disclosure document either way.