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Dan Prechtel

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Franchise Broker vs Franchise Consultant

There has been some confusion between the terms Franchise Broker and Franchise Consultant. Franchise Alliance Consultants can be titled "Franchise Consultants" or "FRanchise Brokers." A Franchise Alliance Consultant plays a role in the buying process of a franchisee and a franchisor and also is trained to consult with mom-and-pop businesses to help them become a franchise.

There has also been some talk that Franchise Brokers should not call themselves "Franchise Consultants." The Federal Trade Commission, which is is an independent agency of the United States government that regulates franchising, acknowledges franchise brokers same as franchise consultants. Below is a statement from their website:

There is little doubt that a consultant who either offers or sells a franchise directly to a prospective franchisee or otherwise arranges for the sale of a franchise, and who receives commissions from the franchisor for the franchise sale, will be covered by the Rule's disclosure obligations as a "franchise broker."

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Franchise Broker vs Franchise Consultant

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