GLOSSARY

Franchise broker (franchise consultant)

A franchise broker or "consultant" is paid by franchisors — typically 40–50% of the initial franchise fee — for each buyer they place, which shapes which brands they show you.

Brokers present themselves as free advisors, and to the buyer they are free — because the franchisor pays a placement commission, commonly $15,000–$25,000 per closed deal. That structure has two consequences: you will mostly be shown brands that pay commissions (many of the strongest systems don't need brokers), and "this brand is a great fit" is also the sentence that gets the broker paid.

It is the same conflict that reshaped financial advice, unresolved in franchising. A broker can still be useful for discovery; just never let the party paid by the seller be your only diligence.