The Hidden Conflict in franchise brokering
When you're evaluating a franchise opportunity, it's common to come across someone who offers to "help you for free." They're often called franchise consultants or brokers, and at first glance, they seem like a helpful guide through a complicated process.
And to be clear: franchise brokers can provide value. They often have access to a wide range of systems, can help you clarify your interests and investment range, and streamline the process of identifying opportunities worth exploring.
But here’s what most people don’t realize:
Franchise brokers are almost always paid by the franchisor.
That means they only get paid when you buy something. And not just anything — a franchise system that has agreed to pay them a referral fee.
So while they may present themselves as unbiased consultants, their compensation creates an inherent conflict:
They are financially incentivized to steer you toward brands that pay them.
They may overlook red flags or hard truths about a system.
They may not mention other opportunities that aren't in their portfolio.
None of this makes them unethical. It just means that they aren’t working for you.
This is a blind spot for many first-time franchise buyers. You assume you're getting objective advice, but you're actually in a sales process — one where the true risks (and costs) might not get the attention they deserve.
So, what should you do?
Recognize the role a broker plays. They are a finder, not an independent advisor. They can be helpful in surfacing options, but you shouldn't rely on them to fully vet your decision.
Ask about incentives. Don’t be afraid to ask how they get paid and whether they're showing you all the options that might fit.
Get an independent second opinion. This is where Franchise Clarity comes in. I don’t sell franchises. I don’t take commissions. My only interest is helping you evaluate the opportunity clearly and avoid costly mistakes.
Franchise ownership can be a great path. But it deserves more than a sales pitch. It deserves clarity.
If you’re considering a franchise and want help seeing the full picture, I offer a free, no-pressure clarity call. You can also request my checklist: "10 Things That Matter More Than the FDD." Just send me a message or connect with me on LinkedIn.
