When entrepreneurs decide to join an organization to become franchise consultants, also known as a franchise broker, one of the main questions is “how will I get paid?”

commissions

The franchise broker is sometimes considered very similar to a recruiter. When a match is made between the franchisor and the franchisee, the franchise broker receives a payment. Franchisors are represented by the consulting organization with which the franchise consultants are affiliated. The consultant must be part of the consulting organization in order to earn the commission.

Franchisees pay nothing beyond the franchise price originated by the franchisor. The franchisor pays a predetermined amount when the deal is made. The amount of the fee is agreed with the consulting organization when the franchisor hires its services for the first time.

The referral fees earned by the franchise consultant typically range from $ 10,000 to $ 15,000; however, it can go as high as $ 50,000 if an entire territory is sold.

How fees are earned

Franchisors are willing to pay these fees to find quality franchisees to run their businesses. Franchise brokers earn these fees primarily because they rate potential candidates in detail to determine whether they are suitable for a particular business. At the same time, they are perfecting the franchise in which the franchisee is most likely to be successful; thus benefiting both parties.

Processing and payment time

Franchise consultants often don’t have to wait for the franchise to open to get paid. Accrued fees are paid at the time the franchisee pays their franchise fee.

In general, there is a fairly quick turnaround for the consultant to receive his earnings; hence the potential to generate fairly constant income.