Difference Between Franchise Consultant and Broker

What is the difference between a Franchise Consultant and 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

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.

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.

Relationship with the Client

The relationship between a Franchise Consultant and a client is best described as “counseling.” Keep their client’s best interests in mind, all IFPG Consultants follow the IFPG Code of Ethics. Consultants provide guidance and expert advice to help people identify franchises that are suitable matches for their interests, budget, skillset and lifestyle. IFPG Franchise Consultants are not restricted by area and can work fully remotely. In fact, 99% of IFPG Consultants never meet with their clients face-to-face. Consultations are done by phone or video conferencing and can take place anywhere.

Franchise Consultant on Phone

Franchise Consultants Work from Home

franchise consultant collaborating

Franchise Consultants are In Demand in the Franchise Industry. Consultants must understand the franchises they represent in order to best serve candidates and franchisors. IFPG offers multiple ways for franchisors to “pitch” to Consultants.

Broker Relationship with the Franchisor

Businesses use the franchise model to scale their brands by partnering with quality investors (aka franchisees). Franchisors rely on Franchise Consultants to introduce suitable candidates. Franchisors like to work with Consultants who understand their brand and the type of people who will best represent it as franchise owners. The relationship between the Franchise Consultant and the Franchisor is best described as “brokering.” In the eyes of the Franchisor, the Franchise Consultant arranges a transaction for his brand with an investor (franchisee) for a commission. 

In the Franchise industry, the words “Broker” and “Consultant” are often used interchangeably.

To the outside world and to your clients, you are viewed as a Franchise Consultant. You offer advice to your client and help guide him to the opportunity that is a perfect fit. You are the expert.

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Red Boswell

“IFPG’s mission is to serve the franchise industry with innovation, growth and opportunity. We do that by constantly improving and adding to the value we bring our members. Find out why more than 1,000 of the industry’s most respected professionals chose IFPG. Schedule a one-on-one virtual tour with a member of our team. Thank you for the opportunity to serve you.”

Red Boswell, President