How Do Franchise Consultants Get Paid? | Be The Boss

How Do Franchise Consultants Get Paid?


Mar 11, 2013

How Do Franchise Consultants Get Paid?

As entrepreneurs decide to join an organization to become a franchise consultant, also know as a franchise broker, one of the main questions becomes "how will I get paid"?


The franchise broker is sometimes considered very similar to a recruiter. When the match is made between franchisor and franchisee, the franchise broker receives a payment. The franchisors are represented by the consulting organization that the franchise consultants are affiliated with. The consultant must be part of the consulting organization in order to earn the commission.

Franchisees do not pay anything beyond the franchise price originated by the franchisor. The franchisor pays a pre-determined amount when the deal is made. The amount of the fee is agreed upon with the consulting organization when the franchisor first enlists their services.

The referral fees that the franchise consultant earns typically range between $10,000 and $15,000; however may run as high as $50,000 if an entire territory is sold.

How Fees are earned

The franchisors are willing to pay these fees in order to find quality franchisees to run their businesses. The franchise brokers earn these fees mainly because they qualify potential candidates in detail to determine if they are a good fit for a particular business. At the same time they are honing in on the franchise that the franchisee is most likely to succeed at; thereby benefiting both sides.

Processing and Timing of Payment

Franchise consultants do not typically have to wait for the franchise to open in order to receive payment. The fees earned are paid at the time the franchisee pays their franchise fee.

Overall, there is a fairly quick turnaround for the consultant in receiving their earnings; therefore the potential to bring in quite a steady income.


by Peter Casey

Peter Casey is a well known franchise professional who consults with franchise systems and franchise seekers. As an author, public speaker & franchise consultant Peter has educated thousands of people about their options in the franchise industry. Peter is also the Managing Director of the Franchise Alliance. If you have questions or want to become a franchise consultant visit


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