What is the difference between a Franchise Consultant and a Franchise Broker? The simple answer is… “it depends on who you ask.”
Anyone who helps other individuals through the process of buying a franchise is considered a Franchise Consultant or a Franchise Broker. Below, we define the terms “consultant” and “broker” to clarify the differences.
Consultant Definition
According to Wikipedia, a consultant (from Latin: consultare "to deliberate") is a professional who provides expert advice in a particular area. A consultant is usually an expert or an experienced professional in a specific field and has a wide knowledge of the subject matter.
Franchise Consultant Definition
The definition of a Franchise Consultant iis multi-faceted. The role of a Franchise Consultant pivotal in every phase of the franchise discovery process. Franchise Consultants’ services are in demand more and more as the industry grows. Acting as trusted advisors, Franchise Consultants help people who are considering a franchise purchase. First and foremost, a franchise sales broker helps interested parties determine if a franchise investment is the right move. From there, Franchise Consultants guide candidates through the process of determining which ownership model, business sector, and brands would be suitable for the candidate’s lifestyle, investment level, and experience. Once specific opportunities and brands have been identified, the franchise sales broker works hand-in-hand with the candidate and the franchisor to ensure a good fit is made for all parties.
Franchise Consultants work independently but gain more industry recognition, education, and credibility when they are affiliated with a franchise brokerage such as IFPG. As with any Franchise Consultant company, all of IFPG’s Franchise Consultant members have gone through extensive training to ensure that they are educated on franchising’s best practices and have in-depth industry knowledge. Franchise Consultants follow the IFPG Code of Ethics which upholds the Franchise Consultant company's reputation for virtuous business practices and ensures that a candidates’ best interests always come first.
What is a Franchise Field Consultant?
Even though their names are similar, a franchise field consultant’s job is completely different from a Franchise Consultant’s job. Franchise field consultants are employed by franchisors and work directly with franchisees. They work within a specified area and help franchise owners run their business most effectively by providing strategies and guidance set by the franchisor. Franchise field consultants also ensure that franchisees follow and implement the franchisor’s system as specified in the franchise agreement. Franchise field consultant jobs have been growing along with the continued growth of the franchise industry.
What is a Franchise Sales Broker?
According to Wikipedia, a broker is an individual who arranges transactions between a buyer and a seller for a commission once a deal is executed. What is a Franchise Broker? A franchise sales broker is a professional who acts as an intermediary between buyers and sellers of franchises. Similar to real estate agents, a Franchise Broker gets a commission when a franchise sale is brokered.
What is the Average Commission for a Franchise Consultant?
What is the average commission for a franchise consultant or franchise broker? Franchise brokers and franchise consultants provide free advice for prospects and only receive a commission when a sale is made. Franchise brokers receive a portion of the franchise fee, and the average commission is between $18k to $30k for a single unit franchise. But commissions are larger if you sell multiple units, area developer rights, or a master franchise. Ultimately, the commissions that you receive are up to you. Franchise brokers can make an executive level salary or work part-time for additional revenue.