how do franchise consultants get paid
Last updated: August 25, 2026
Payment trigger
| Event | Common commission model | Buyer-paid fee model |
|---|---|---|
| First call | No payment | Fee may start here if that is the written deal |
| FDD issued | No payment | Still no franchisor commission |
| Buyer signs | Franchisor pays the consultant | Depends on the written buyer-fee terms |
| Buyer walks away | Consultant is not paid | Consultant may still have earned the buyer fee |
Related: franchise consultant cost, franchise consultant fees and commission.
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
How do franchise consultants get paid?
Most are paid by the franchisor when a buyer signs a franchise agreement. Buyers are typically not invoiced.
Do buyers pay franchise consultants directly?
Usually no. A minority of advisors charge the buyer a fee instead of taking franchisor commission. Ask which model applies.
Where is the payment disclosed?
Look in that brand's FDD Items 5 and 7 for broker or referral payments. Not every filing prints a rate. This page ships no commission percentage.
What happens if the buyer walks away?
On the common commission model, the consultant is not paid. That is the conflict.