Strata Brands

Capital isn’t scarce. Franchise expertise at scale is.

Anyone can fund a franchisor. We bring the five functions the business actually runs on: operations, training, franchisee support, finance and franchise development.

Why do good brands stall short of 100 units?

Fewer than 18% of franchise brands ever reach 100 units, and the average brand that gets there takes eleven years.

Source: FRANdata.

It is rarely the product. The service works, the franchisees who run it well do well, the reviews are good.

What happens is this. The founder and the small group who helped build the brand are the ones supporting franchisees. They are good at the business. Supporting a franchise system is a different job and was never their expertise. At ten franchisees it works. At twenty it mostly works. Past that it does not.

Training never gets rewritten. Field visits stop happening. Support answers slowly, or not at all. And because nobody inside has the time or the background to recruit franchisees properly, development gets handed to brokers.

Then it compounds. Owners who were never the right fit underperform. AUVs drift down. Validation gets harder, so awarding new units slows and then stops. Revenue flattens, costs get cut, and the brand stalls where it is.

Stalling there costs more than the units it did not open. At scale a brand gets buying power with suppliers, national accounts its franchisees can sell into, and enough owners in enough markets that a candidate can call someone who looks like them. Awareness compounds. Good operators take the brand seriously. Below that, every one of those is a stretch.

We are operators. We have built every one of those functions before, inside brands we owned, and we have awarded thousands of locations doing it. We invest in the brand, build what is missing, and grow the number of open, royalty-paying units.

What we bring on day one

01

Operations

Hands-on leadership where a brand has lost direction, and a field team franchisees actually hear from.

02

Training

Onboarding and ongoing training rebuilt for the brand it is now, not the one it was at twenty units. A franchisee trained badly never fully recovers.

03

Franchisee support

The work that decides whether a system validates: responsiveness, real answers, and owners who recommend the brand to the next candidate.

04

Finance and legal

A real finance function, institutional-grade reporting, FDD and registration discipline, and the experience to handle resales, transfers and add-ons properly.

05

Franchise development

Direct, targeted operator sourcing. Honest financial qualification. A validation process a candidate can trust. Discovery days that disqualify as well as attract.

Signed agreements are not the scoreboard. Open, royalty-paying, validating units are.

We grade ourselves on units open and operators who would do it again.

Franchise development should be a profit center

In most emerging brands it is the opposite. The fee goes out the door to a broker, and what is left does not cover the cost of onboarding the franchisee it paid for.

A broker gets paid when the deal closes. Not when the unit opens, not when it is profitable, not when the owner would recommend the brand to somebody else. The incentive is the commission, so the candidate who fits and the candidate who signs fastest get treated the same way.

FRANdata puts it in numbers: emerging franchisors spend about 73% of initial franchise fee revenue on services that do nothing brand-specific, with prospect acquisition alone averaging 43%. The brand carries the cost of a franchisee somebody else chose.

Source: FRANdata, April 2020.

We source entrepreneurs directly and qualify them ourselves, against a candidate profile we wrote and financial qualification we ran. Done that way the initial fee covers what it is supposed to cover and leaves margin behind, so development stops being a line item the brand subsidizes and starts paying for itself.

The quality argument matters more than the money one. A franchisee recruited for fit validates the brand for the next ten candidates. A franchisee recruited for a commission shows up later as a closure or a transfer.

Why this, why now

12,500

Net new franchise units projected across the U.S. in 2026.

IFA / FRANdata 2026 Franchising Economic Outlook

+3.2%

Growth in commercial and residential services — tied for the fastest-growing franchise sector of 2026.

IFA / FRANdata 2026 Franchising Economic Outlook

37%

Of the brands that crossed 100 units since 2010, more than a third now operate below their own peak. Getting there is not the same as staying there.

FRANdata

If you built the brand, you should know who you are partnering with

Founders partner with operators they respect. We are operator partners, not just capital partners — we back the brands and the franchisees already there, and bring the people and the functions the business is missing. Every conversation is confidential, and we will tell you quickly and honestly whether your brand fits what we do.