Franchise Buyers Desk

Franchise Buyers Desk

Most buyers pay nothing for a franchise consultant. FranNet says "Zero. Working with FranNet is absolutely free." KLC says "100% free for investors." Glover says it "provides free franchise consulting services." The FTC says "Ask who pays the broker and how the payment is calculated," then receive the FDD "at least 14 days before you are asked to sign."

Last updated: September 9, 2026

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What to verify in the FDD

ItemWhy buyers open it
FDD Items 5-7The FTC Consumer's Guide labels these Initial and Ongoing Costs (FDD Items 5-7) — deposits or franchise fees that may be non-refundable, initial inventory, signs, equipment, leases, royalties, and advertising fees.
Item 19Financial Performance Representations (FDD Item 19), if the franchisor chose to include them
Item 20The FTC says Item 20 provides charts showing growth and owner turnover — use contacts for validation calls with current and former franchisees

How is the broker paid? Some brokers earn a flat fee regardless of the price of the franchise they sell. Others earn a commission based on the cost of the franchise. These brokers may steer you toward a more costly franchise to increase their commission. Ask who pays the broker and how the payment is calculated. FTC Consumer's Guide

Rule cite: FTC Franchise Rule (16 CFR Part 436). Waiting period: FTC Consumer's Guide to Buying a Franchise.

ClaimListedURL
FDD at least 14 days before sign or payat least 14 days before you are asked to signftc.gov/business-guidance/resources/consumers-guide-buying-franchise
Ask who pays the brokerAsk who pays the broker and how the payment is calculatedftc.gov/business-guidance/resources/consumers-guide-buying-franchise
Brokers paid only if a sale is madepaid only if a sale is madeftc.gov/business-guidance/resources/consumers-guide-buying-franchise
Read each of the 23 numbered ItemsRead each of the 23 numberedftc.gov/business-guidance/resources/consumers-guide-buying-franchise
FDD Items 5-7 initial and ongoing costsInitial and Ongoing Costs (FDD Items 5-7)ftc.gov/business-guidance/resources/consumers-guide-buying-franchise
Item 19 financial performance representationsFinancial Performance Representations (FDD Item 19)ftc.gov/business-guidance/resources/consumers-guide-buying-franchise
Item 20 growth and owner turnover chartsItem 20 provides charts showing growth and owner turnoverftc.gov/business-guidance/resources/consumers-guide-buying-franchise
Call current and former franchiseescurrent and former franchiseesftc.gov/business-guidance/resources/consumers-guide-buying-franchise
FTC Franchise Rule is 16 CFR Part 43616 CFR Part 436ftc.gov/legal-library/browse/rules/franchise-rule
FranNet consulting cost is zero / absolutely freeZero. Working with FranNet is absolutely free.frannet.com/faq/
FranNet broker fee from the franchisebroker fee directly from the franchisefrannet.com/faq/
FranNet introduces many different franchisorsintroduce you to many different franchisorsfrannet.com/franchise-consultants/
FranNet at no cost and no obligationat no cost and no obligation to youfrannet.com/franchise-consultants/
KLC consulting 100% free for investors100% free for investorsklcfranchise.com/
KLC compensated by the brandscompensated by the brandsklcfranchise.com/
KLC adds no cost to youadds no cost to youklcfranchise.com/
KLC is a nationwide consulting firma nationwide consulting firmklcfranchise.com/
Entrepreneur: consultant/broker free of chargefree of chargeentrepreneur.com/.../431754
Entrepreneur compensated by franchisors on salecompensated by franchisors upon the close of a saleentrepreneur.com/.../431754
Glover provides free franchise consultingprovides free franchise consulting servicesgloverfranchising.com/
Broker/consultant same role under different name (CT Acquisitions)same role under a different namectacquisitions.com/franchise-consultants-how-to-vet/

Sources (fetched 9 Sep 2026): FTC Consumer's Guide; FTC Franchise Rule; FranNet FAQ; FranNet franchise consultants; KLC Franchise; Entrepreneur — free of charge; Glover Franchising; Glover broker disclosure; CT Acquisitions — how to vet.

Frequently Asked Questions

How do franchise consultants get paid?

Most franchise consultants get paid by the franchisor, not by you. FranNet says it receives its "broker fee directly from the franchise" and is "absolutely free." KLC says it is "compensated by the brands" and "100% free for investors." The FTC says brokers are "paid only if a sale is made"—ask who pays.

Do I need a franchise consultant?

No. Entrepreneur says you can "go it alone." FranNet says it can "introduce you to many different franchisors" "at no cost and no obligation to you." You still read the FDD yourself. The FTC says receive it "at least 14 days before you are asked to sign" and call "current and former franchisees."

What is a Franchise Disclosure Document?

The FDD is the disclosure franchisors must give before you sign or pay. The FTC Consumer's Guide says you must receive it "at least 14 days before you are asked to sign," and to "Read each of the 23 numbered" Items. Open Items 5–7, Item 19, and Item 20 first.