what does a franchise broker do
Last updated: August 25, 2026
What a broker does and does not do
| Task | Typical broker role | Who else |
|---|---|---|
| Match a buyer profile to represented brands | Yes | You can also contact brands direct |
| Schedule franchisor development calls | Yes | You can book those calls yourself |
| Issue the FDD | No — the franchisor issues it | Franchisor, under 16 CFR Part 436 |
| Legal review of the franchise agreement | No | Your attorney |
| Independent financial model | No | Your accountant, using Item 7 / Item 19 / Item 21 |
Related: franchise consultant vs franchise broker, how franchise consultants help buyers.
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
What does a franchise broker do?
A franchise broker introduces buyers to franchise brands and coordinates franchisor meetings. Most are paid by the franchisor when the buyer signs.
Is a franchise broker different from a franchise consultant?
Buyers hear both labels for the same introduction role. See franchise consultant vs franchise broker. This page invents no license split.
Does a broker review the franchise agreement for the buyer?
No. Hire your own attorney. The broker is typically paid by the franchisor on close.
Does a broker replace the FDD?
No. The franchisor must give you the FDD at least 14 days before you sign or pay.