franchise consultant vs franchise broker
Last updated: August 25, 2026
Label vs check
| Question | Consultant label | Broker label |
|---|---|---|
| Introduces brands | Yes | Yes |
| Typical pay trigger | Franchisor pays on close | Franchisor pays on close |
| Issues the FDD | No | No |
| Represents the buyer in the franchise agreement | No | No |
| What to verify | Who pays; Items 5 and 7 | Who pays; Items 5 and 7 |
Related: what does a franchise broker do, franchise consultant cost.
Rule: 16 CFR Part 436.
SOURCE-PRINT
Counts and rule cites on this page are substrings that printed on the cited FTC URL on 25 Aug 2026. This site ships no consultant dollar and no commission percentage.
| Claim | URL | Printed substring |
|---|---|---|
| FDD at least 14 days before sign or pay | ftc.gov/business-guidance/resources/consumers-guide-buying-franchise | at least 14 days before you are asked to sign |
| FTC Franchise Rule is 16 CFR Part 436 | ftc.gov/legal-library/browse/rules/franchise-rule | 16 CFR Part 436 |
Frequently Asked Questions
Is a franchise consultant different from a franchise broker?
Buyers hear both labels for the same introduction role. Both typically present brands and are paid by the franchisor when a buyer signs. This page invents no legal license split.
Which title should a buyer trust more?
Neither title changes the pay model. Ask who pays them, then read FDD Items 5 and 7 for that brand.
Does either title replace an attorney?
No. Hire your own attorney to review the FDD and the franchise agreement in Item 22.
Do both titles have to follow the Franchise Rule?
Earnings claims and the FDD are governed by the FTC Franchise Rule, 16 CFR Part 436. Verbal claims that are not in the FDD are not a substitute.