The terms are used loosely, and in practice most brokers and consultants are paid the same way: by the franchisor, when a candidate they introduced signs. So the useful question is not the title but the approach.
Transactional
A transactional model focuses on volume. Your details may be shared with several franchisors quickly, and the conversation centers on brands that are available rather than on your goals. It can move fast, and it can feel like being sold to.
Consultative
A consultative model starts with you: your skills, capital, risk tolerance and what you want your days to look like. The advisor narrows the field to a small number of fits, helps you do real due diligence and is comfortable when the answer is “not yet”.
How to tell which one you are dealing with
- Ask directly how they are paid, and by whom
- Ask whether they will share your details with anyone without your permission
- Notice whether the first call is about you or about brands
- Ask how many brands they typically present, and why
- Ask how they help with FDD review and validation calls
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