FranDevCo

Playbook 1. Franchise development, the broker-replacement wedge.

ACTIVE — Sung Ohm CEO meeting, Mon July 27, 3pm CT

FranDevCo is a franchise development company. They make money helping franchisor brands sell franchises. Their pain lives in three places: lead cost (industry average $351/lead, $17,550/deal), broker dependence (40-50% of the initial fee walks out the door), and a regulatory wave (NASAA) about to make their broker relationships a liability.

The wedge

“Brokers take half your franchise fee and the new broker-registration laws are coming for that model. We generate the same candidate conversations on a flat fee, using data brokers don’t have, and every reply routes to YOUR team. You keep the fee. You stay compliant. We proved it with Bex.”

Why it wins:

Economics

Against $17,550-per-deal broker math, even 2-3 qualified franchisor-routed conversations a month at $2,500-7,500 flat is a bargain.

Compliance as product

The NASAA act bars franchisors from using unregistered brokers. Flat fee, no candidate qualification, replies route to the franchisor makes DH the only vendor type they can safely use.

Data nobody pays for

Item 20 + SBA data names every existing franchisee in America, the multi-unit expansion audience FRANdata charges premium prices for. Built under a $500 tooling ceiling.

The 10 slots

Slot	Answer
Wedge	Replace the broker. Deliver franchisee deal flow on a flat fee, fully compliant, franchisor-routed.
Anchor source	FDD Item 20 franchisee exhibits (free, WI/MN/CA/IN portals) + SBA 7(a)/504 FOIA loan data (free, names franchise borrowers by brand). Franchimp $167/mo as the rung-2 accelerant.
Channel	Cold email to multi-unit operators (business inboxes). LinkedIn manual flank for first-timers.
Funnel variant	FranDevCo bridge variant. Vetted booking only, every reply and booking routes to the franchisor’s own dev team with a full brief.
Offer / price	Flat retainer, $2,500-7,500/mo per brand. NO success fees, ever (NASAA). Engine license across the portfolio = the long game, never the opener.
Outreach lane	Type D flagship lane (multi-unit expansion). Compliant flat-fee, franchisor-routed, always.
Referral fit	NONE for candidate flow. FranDevCo itself can become a referral SOURCE for engine deals later.
Compliance flags	NASAA Model Act, CA SB 919, 14 registration states geo-fenced, no earnings claims outside Item 19, DH never qualifies/scores/steers candidates. Counsel gate open.
Proof asset	Bex+Co. Live franchise operating system: location setup, fleet task sync, dashboards, franchisee funnel. Lead with it.
Blockers	(1) Counsel blessing on the vendor-framing question before July 27. (2) Domain-attach ruling before any 10x-at-scale promise.

July 27 meeting doctrine (ruled 7/12)

Single offer

Broker replacement. That is the whole ask.

One closing slide

Engine license across their portfolio, framed as “where this goes,” with no ask attached.

Lead with Bex proof

Work our way in. No big-structure ask upfront.

Roles in the room

Stefi leads the human/sales side, lit up on this exact wedge. Andrew holds the engine story.

Zero earnings claims

Unit counts, territory availability, Item 7 ranges, FDD invitations. That is the safe vocabulary.

The outreach lane (once signed, per brand)

Harvest Item 20 exhibits for target + adjacent brands (Apify scrape + PDF table extraction, four state portals).
Load SBA 7(a)/504 CSVs, filter to franchise borrowers, join against Item 20 on name + geo. Output = liquidity-verified multi-unit prospects.
Franchimp ($167/mo) buys back the parsing labor if free-harvest yield disappoints.
Standard enrichment waterfall (Prospeo → Anymail Finder → MillionVerifier).
Copy: expansion economics with the Item 19 screen applied. Hook = their existing units (“two locations in Plano already”). CTA = intro to the franchisor’s dev team or request the FDD.
Every reply grades in bbe-ledger and routes to the franchisor. DH hands over conversations, never verdicts.

Roadmap

Now (pre-July 27): counsel pack delivered and answered, meeting one-pager built, Bex proof assets assembled, Lauren touch cadence continues.

Next (on a yes): one flagship brand, over-deliver, weekly plain-English reporting, Item 20 + SBA harvest live within week 1.

Later: results spark the portfolio conversation on their side, engine license priced with scarcity, FranDevCo becomes the distribution channel for Playbook 2 at scale.

Compliance rail (non-negotiable)

DH is a marketing services provider, never a franchise broker. Fees are flat. No compensation contingent on any franchise sale.
DH never qualifies, scores toward a sale, advises, or introduces specific candidates. Replies route to the franchisor.
No earnings claims outside FDD Item 19. Disclaimers cure nothing.
Franchise-offer campaigns geo-fenced out of the 14 registration states until counsel clears each. CA excluded by the standing geo-fence.

Kill criteria / tripwires

Counsel says the vendor framing fails → the candidate-scoring feature comes OUT of anything franchise-facing, offer reshapes to pure outreach + routing.
Any state enacts the NASAA act → re-run the geo-fence with counsel that week.
FranDevCo asks for success-fee pricing → the answer is no, and the reason is the sales pitch itself.