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A franchise is the agreement or license between two legally independent parties which gives: â¢ a person or group of people (franchisee) the right to market a product or service using the trademark or trade name of another business (franchisor) â¢ the franchisee the right to market a product or service using the operating methods of the franchisor â¢ the franchisee the obligation to pay the franchisor fees for these rights â¢ the franchisor the obligation to provide rights and support to ...
But keep in mind that brokers are paid a commission only when you buy a franchise from one of their clients. When you sign your franchise agreement, the broker will typically earn 40% to 50% of the franchise fee you pay to the franchisor or even more, since most brokers have a minimum fee in the range of $12,000.he simple answer is that franchise brokers are hired by franchise companies to sell you a franchise. If you are looking at franchise opportunities, sooner or later you will become acquainted with a broker network.