How Do Franchise Consultants Get Paid?

Ever wondered how franchise consultants earn their keep? It’s a common curiosity, and in this brief guide, we’ll unravel the mystery behind how these helpful professionals turn their expertise into earnings.

Join us as we explore the straightforward ways franchise consultants get paid, making the world of franchising a bit more understandable for everyone.

How Do Franchise Consultants Get Paid?

First things first, let’s understand the basics. Franchise consultants help businesses grow by guiding them through the franchising process. But how do they make money? Let’s find out!

1. Consultation Fees:

Think of a consultation fee as a “getting started” payment. When businesses seek advice from a franchise consultant, they often pay a fee for the consultant’s time and expertise. It’s like paying for a helpful chat to kickstart their franchising journey.

2. Success Fees:

Here’s where things get interesting. Franchise consultants often earn a “success fee” when a business successfully becomes a franchise.

This fee is a small percentage of the total franchise deal, usually around 40-50%. It’s a win-win – the business expands, and the consultant shares in the success.

3. Hourly Rates or Project Fees:

Sometimes, consultants work on specific projects, like creating a franchise business plan or helping with marketing strategies.

In these cases, they might charge an hourly rate or a fixed project fee. It’s like paying for their time and effort to make things happen.

4. Ongoing Support Fees:

Even after the franchising journey begins, some consultants offer ongoing support services. Businesses pay a fee for continued advice, training, or troubleshooting.

It’s like having a reliable guide by their side as they navigate the franchise world.

5. Combining Different Methods:

Franchise consultants can be flexible. Some may use a mix of consultation fees, success fees, and other methods depending on the needs of the business.

It’s about finding a payment structure that works for everyone involved.

6. Different Fee Options:

The most common fee structure involves taking a commission as a percentage of the franchise fee, typically around 40-50%.

However, franchise consultants might offer different options such as hourly, fixed, or retainer fees.

This flexibility allows businesses to choose a payment method that aligns with their preferences and budget.


So, there you have it – a friendly explanation of how franchise consultants get paid. Whether it’s consultation fees, success fees, hourly rates, or ongoing support fees, it’s all about helping businesses succeed while earning a living doing what they love.

If you’re thinking about becoming a franchise consultant or just curious about the process, understanding how they get paid is a great first step!