More Data, Less Guesswork: The New Rules of Franchise Brokerage
Update: 2025-10-28
Description
Thank you to ClientTether for sponsoring this episode of The Advisory Board Podcast.
In this episode, Dave Hansen sits down with Jania Bailey, CEO of FranNet, to unpack the changing role of brokers and consultants in franchising. Jania opens with FranNet’s backstory — 38 years in the business, built as a franchise model rather than a typical membership organization — and explains how their centralized Marketing, IT, and Support teams free consultants to focus on what matters most: qualifying high-quality candidates and matching them to the right brands. That operational difference, she says, is why FranNet consistently delivers strong fits for both candidates and franchisors.
The conversation moves into regulation, where Jania argues that the push for disclosure and registration is long overdue. California is leading the charge with new rules that require broker disclosures, brand lists, and placement data; other registration states in the NASAA group are likely to follow. Jania believes transparency will weed out bad actors and elevate the entire industry. She compares the current state of franchise brokering — where almost anyone can hang out a shingle — to industries that require licensing, and says consumers deserve that same level of protection when their life savings are on the line.
Dave and Jania also dig into the practical implications. Candidates could face a flood of disclosures and multiple brands to evaluate, so brokers will need to guide them through what to prioritize rather than overwhelm them with paperwork. For broker firms, the new requirements could be a heavy lift for smaller operations; larger franchised groups like FranNet can centralize filings and streamline compliance for their consultants. Jania expects some consolidation and exits — she’s not shy about saying a few operators should probably leave the industry — but she views that as a healthy cleansing that will build trust.
For franchisors, Jania urges honesty and preparedness. Brands that want broker support should make sure their house is in order: validated unit economics, happy franchisees, adequate capitalization, and systems that let the business run without the founder’s constant involvement. Sharing placement data and success metrics with broker partners will not only help compliance but also become a powerful marketing differentiator. On economics, Jania suggests realistic expectations: Working with brokers usually implies meaningful broker fees — entry-level economics start around $25K, with many opportunities sitting in the $30–35K range — and brands must ensure total investment supports those fees without undermining franchisee success.
Throughout the episode, Jania’s insistence on transparency and consumer-first thinking is steady and unapologetic. She believes clearer disclosures and higher standards will protect prospective franchisees, lift the reputation of good brokers, and ultimately strengthen the ecosystem. If you’d like to follow up with Jania, visit FranNet.com or email JBailey@FranNet.com.
Thanks again to ClientTether for making this episode possible. Tune in for more conversations aimed at helping you build lasting brands.
In this episode, Dave Hansen sits down with Jania Bailey, CEO of FranNet, to unpack the changing role of brokers and consultants in franchising. Jania opens with FranNet’s backstory — 38 years in the business, built as a franchise model rather than a typical membership organization — and explains how their centralized Marketing, IT, and Support teams free consultants to focus on what matters most: qualifying high-quality candidates and matching them to the right brands. That operational difference, she says, is why FranNet consistently delivers strong fits for both candidates and franchisors.
The conversation moves into regulation, where Jania argues that the push for disclosure and registration is long overdue. California is leading the charge with new rules that require broker disclosures, brand lists, and placement data; other registration states in the NASAA group are likely to follow. Jania believes transparency will weed out bad actors and elevate the entire industry. She compares the current state of franchise brokering — where almost anyone can hang out a shingle — to industries that require licensing, and says consumers deserve that same level of protection when their life savings are on the line.
Dave and Jania also dig into the practical implications. Candidates could face a flood of disclosures and multiple brands to evaluate, so brokers will need to guide them through what to prioritize rather than overwhelm them with paperwork. For broker firms, the new requirements could be a heavy lift for smaller operations; larger franchised groups like FranNet can centralize filings and streamline compliance for their consultants. Jania expects some consolidation and exits — she’s not shy about saying a few operators should probably leave the industry — but she views that as a healthy cleansing that will build trust.
For franchisors, Jania urges honesty and preparedness. Brands that want broker support should make sure their house is in order: validated unit economics, happy franchisees, adequate capitalization, and systems that let the business run without the founder’s constant involvement. Sharing placement data and success metrics with broker partners will not only help compliance but also become a powerful marketing differentiator. On economics, Jania suggests realistic expectations: Working with brokers usually implies meaningful broker fees — entry-level economics start around $25K, with many opportunities sitting in the $30–35K range — and brands must ensure total investment supports those fees without undermining franchisee success.
Throughout the episode, Jania’s insistence on transparency and consumer-first thinking is steady and unapologetic. She believes clearer disclosures and higher standards will protect prospective franchisees, lift the reputation of good brokers, and ultimately strengthen the ecosystem. If you’d like to follow up with Jania, visit FranNet.com or email JBailey@FranNet.com.
Thanks again to ClientTether for making this episode possible. Tune in for more conversations aimed at helping you build lasting brands.
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