
Market value and power accrue to platforms of all kinds, but especially to technology platforms. Scale raises competitive barriers, and attracts participants, capital and customers. A well-managed platform also gets smarter with each bit of collected data.

In franchising, there are three influential platform types, and higher enterprise value, scale economies and competitive advantages tend to accrue to platforms. Craft your brand growth strategy with this in mind.

Why do candidates want a franchise? What are their desired outcomes? “How” things get done will evolve over their 10-plus-year license agreement. Pressure test their assumptions and beliefs to ensure their “whys” will endure.

Achieving 100 open units is the first major proof of a potentially viable—and valuable—franchise. That’s why brands race to get there fast. Then the effort shifts to opening 250 with a backlog, branching out internationally, then 500 open with a bigger backlog, and so on.

Franchisors are required to include a significant amount of information in their Franchise Disclosure Document (FDD,) which is then shared with prospective franchisees, regulators, and lenders.

How can your franchise system grow faster? Look at your unit level profit and loss statements.

The two main indicators of a high quality franchise brand are: (1) strong unit level economics, and (2) strong franchisor-franchisee relationships. Completing a franchisee survey signals that you actually care what franchisees have to say.

Substance matters, not just size. Especially when it comes to your development pipeline.

One of the most efficient ways to predict future franchise brand performance is to examine franchisee survey results. Why?
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PE Profit Ladder® Market Watch Newsletter
PRIVATE EQUITY’S IMPACT ON FRANCHISING
EMERGING BRANDS
TRENDS
BUILDING SMART
PROSPECTIVE FRANCHISEES
TURNAROUNDS & CASE STUDIES