An intermediary may introduce useful opportunities, but you need to understand the commercial relationship behind the shortlist. Ask about compensation and coverage before treating a recommendation as a complete market comparison.
Identify the role and incentives
Ask who pays the intermediary, when payment is earned and whether compensation varies between brands. Establish whether the intermediary represents you, the franchisor or a different party. A service advertised as free to the buyer can still be funded through a commercial referral relationship.
Understand the comparison universe
Request the criteria used to include or exclude brands. Find out whether the shortlist covers only participating networks, one territory or a limited set of formats. A useful shortlist can be selective, but its limits should remain visible.
Verify the underlying offer independently
Follow official brand routes and obtain current written terms. Check factual claims with documents and appropriate advisers rather than relying on the intermediary’s summary. Keep your decision log separate from the lead-generation or application process.
A worked research example
Example: a shortlist contains four brands, all paying referral fees. That does not establish that the brands are unsuitable, but it also does not establish that the best non-participating alternatives were considered. Ask for the selection criteria and investigate beyond the list.
Evidence to gather
- Ask who pays and when
- Identify the intermediary’s represented party
- Request the shortlist’s coverage limits
- Verify claims through official documents
Before you move forward
Frequently asked questions
Does a referral commission prove bad advice?
No. It is an incentive to understand and evaluate alongside the quality and scope of the work.
Does a free service cover the whole market?
Not necessarily. Ask which brands and models are considered.
Can a broker’s summary replace document review?
No. Review the current offer and obtain advice for the proposed transaction.
Sources and scope
References checked 6 November 2026. The questions, examples and diagrams are our editorial research tools; they are not statements that every franchise has the same terms.
- FTC — A Consumer’s Guide to Buying a Franchise
US franchise buying background; our questions and scenarios are independent editorial tools.
- SBA — Plan your business
General US business-planning reference, not franchise-specific costs or a forecast.
General editorial information, not personalised legal, tax or financial advice. Confirm local requirements and the actual documents with appropriate advisers. Examples are hypothetical. Contact the editor or suggest a correction.
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