Compensation Disclosure
Last updated: April 2026
Plain-English summary
FranSelectAI is free for candidates. We are paid by franchisors — not by you — and only if you choose to be introduced to a franchisor in our network and ultimately sign a franchise agreement with them. Our matching algorithm does not factor in which franchisors pay us more. The full mechanics are below.
How we make money
FranSelectAI operates as a franchise broker and referral service. The path to compensation works like this:
- You complete the free FranSelectAI assessment.
- Our AI returns a private match report identifying the franchise industries and categories that fit your profile.
- If a category interests you, you ask us to introduce you to specific brands in our network within that vertical.
- You and the franchisor enter direct due diligence — FDD review, validator calls, financial review, and ultimately their decision and yours.
- If you sign a franchise agreement with a franchisor we introduced you to, that franchisor pays FranSelectAI a referral fee.
The fee is typically a flat referral fee or a percentage of the initial franchise fee. It is disclosed by each franchisor in Item 22 (and related items) of their Franchise Disclosure Document (FDD), which you receive directly from the franchisor before signing.
What candidates pay
Nothing. Ever. There is no charge to use the assessment, receive your match report, or be introduced to franchisors. We will never ask you for money, credit card information, or payment of any kind.
How this affects your matches
Our matching algorithm does not weight or rank franchises based on what they pay us. That variable is not part of the model. Two franchises with identical fit scores receive identical rankings regardless of any difference in referral compensation between their respective franchisors.
We are only paid by franchisors with whom we have an executed referral or broker agreement. As a result, franchises outside our partner network may not appear in your results. Our partner network is curated for quality and breadth across investment tiers; it is not curated based on which franchisors pay the most.
Your responsibility for due diligence
FranSelectAI does not provide legal, accounting, tax, or investment advice. Our match report is a fit-based recommendation; it is not a substitute for the diligence that should precede signing any franchise agreement.
Before signing any franchise agreement you should:
- Carefully review the franchisor’s full Franchise Disclosure Document (FDD).
- Speak with current and former franchisees of the brand (validators).
- Consult an independent franchise attorney.
- Consult an accountant or financial advisor before committing capital.
- Verify all earnings claims and territory representations directly with the franchisor.
Questions
If you have questions about our compensation, our partner network, or how our matching algorithm works, contact Pete Trexler at 7ptrex@gmail.com.
