Industry

Developing Practice Tier 2 Throughput-Constrained Producer

Franchise Brokering & Development

Franchise placement is a speed-to-lead business that answers slowly — most inquiries wait, a third are never worked at all, and the broker who responds in minutes takes the placement economics of everyone who didn’t.

A high-ticket matching business run, across most of the industry, on follow-up habits that would embarrass a car dealership — and priced by an exchange most brokers never design: franchisor mix, split structure, speed to the inquiry.

Industry research

The economics

Days the typical first response, if any Most franchise inquiries wait days for a human response, and roughly a third never receive one at all — the industry’s benchmarks are broken in public.
~5% the typical inquiry-to-close rate The industry norm, on demand the broker already paid for — the number the entire conversion stack exists to move.
70–80% of conversion gain flows to EBITDA For a broker who owns the placement, conversion gains land almost entirely on margin. Inside a network, the split takes its share first — flow-through depends on structure, which is why split terms belong in the same math as close rate.

FIGURES FROM THE FIRM’S PUBLISHED RESEARCH · SOURCES ON REQUEST · THE 2× PLAYBOOK

Growth opportunities

Where the 2× lives

  1. The speed-to-lead machine

    Every inquiry engaged in minutes by systems that qualify, schedule, and brief — with the broker walking into conversations already researched.

  2. Placement economics discipline

    Franchisor mix, territory strategy, and split structure managed as a portfolio — the numbers that set a broker’s ceiling before the first inquiry arrives.

  3. Qualification triage

    Capital, timeline, and fit scored by systems so broker hours concentrate on placeable candidates instead of tire-kickers.

  4. Nurture as infrastructure

    The 6-to-18-month candidates — the majority — held by systematic, respectful cadence instead of memory. The industry’s lost third, recovered.

Our perspective

What most firms get wrong

The mix nobody manages

The industry’s answer to a soft year is more lead spend and a harder close. But two brokers with identical close rates earn very different years — the variance is franchisor mix and split structure, and almost nobody manages either as a portfolio. The cheapest placement is still the inquiry from last Tuesday, worked properly; the largest is the mix.

Where we’d start

The trailing quarter’s inquiries, replayed: response time and touch count on each, the never-worked share counted, and the recovery priced at the firm’s own placement economics.

Put it to us