franchise consultant fees and commission
Most buyers see franchise consultant fees listed as free. FranNet says "Zero. Working with FranNet is absolutely free," and KLC says consulting is "100% free for investors." CT Acquisitions lists franchisor commission "typically 40% to 50%" of the initial fee—on a $50,000 fee, "$20,000 to $25,000." Buyer-paid ranges are listed at "$5,000 to $25,000" or "$100 to $300" per hour.
Last updated: September 2, 2026
Fee and commission terms
| Source | What | Published fee / commission |
|---|---|---|
| FranNet | Buyer fee | Zero. Working with FranNet is absolutely free |
| FranNet | Who pays broker fee | we receive our broker fee directly from the franchise |
| KLC Franchise | Buyer fee | Our franchise consulting is 100% free for investors |
| KLC Franchise | Who pays | we are compensated by the brands |
| CT Acquisitions | Franchisor referral % | typically 40% to 50% of that initial fee |
| CT Acquisitions | On a $50,000 initial fee | On a brand with a $50,000 initial franchise fee, a consultant typically earns $20,000 to $25,000 |
| CT Acquisitions | Flat referral (some brands) | $10,000 is common |
| CT Acquisitions | Buyer-paid retainer | $5,000 to $25,000 |
| CT Acquisitions | Buyer-paid hourly | $100 to $300 per hour |
| VetMyFranchise | Broker commission % | 40 to 50 percent of your first-year fees |
| VetMyFranchise | On a $50,000 franchise fee | On a $50,000 franchise fee that is $20,000 to $25,000 |
| VetMyFranchise | Fee-for-service | $200-$400/hr or $2,500-$7,500 flat |
| FTC Consumer's Guide | Buyer check | Ask who pays the broker and how the payment is calculated |
| FTC Consumer's Guide | FDD wait | at least 14 days before you are asked to sign |
| FTC Franchise Rule | Rule cite | 16 CFR Part 436 |
The FTC Franchise Rule is 16 CFR Part 436. Receive the FDD at least 14 days before you sign or pay. Ask who pays the broker and how the payment is calculated.
Sources (fetched 2 Sep 2026): FranNet FAQ; KLC Franchise; CT Acquisitions; VetMyFranchise; FTC Consumer's Guide; FTC Franchise Rule.
Related: franchise consultant cost, how do franchise consultants get paid, are franchise consultants worth it.
Frequently Asked Questions
Who pays franchise consultant fees and commission?
Franchisors usually pay. FranNet says it receives its "broker fee directly from the franchise," and KLC says "we are compensated by the brands." CT Acquisitions says "About 90% of franchise consultants get paid by the franchisor, not by you, typically 40-50% of the initial franchise fee." The FTC says: "Ask who pays the broker and how the payment is calculated."
Are franchise consultant fees free for buyers?
Often yes on the common model. FranNet says "Zero. Working with FranNet is absolutely free" and "Our services are 100% free." KLC says "Our franchise consulting is 100% free for investors" and "working with us adds no cost to you."
How much commission do franchisors pay consultants?
CT Acquisitions lists a referral fee "typically 40% to 50% of that initial fee." On a brand with a "$50,000" initial fee, it lists "$20,000 to $25,000." VetMyFranchise lists "40 to 50 percent of your first-year fees" and "On a $50,000 franchise fee that is $20,000 to $25,000." Some brands pay a flat referral around "$10,000 is common."
Do any consultants charge the buyer a fee?
A minority do. CT Acquisitions lists buyer-paid retainers "$5,000 to $25,000" and hourly "$100 to $300 per hour." VetMyFranchise lists fee-for-service as "$200-$400/hr or $2,500-$7,500 flat."
What does the FTC say about broker pay and the FDD wait?
The FTC Franchise Rule is "16 CFR Part 436." Receive the FDD "at least 14 days before you are asked to sign." "Ask who pays the broker and how the payment is calculated." The guide also says "Others earn a commission based on the cost of the franchise."