The Developer-Franchisee Dynamic

After 30-plus years leading MX Properties, I’ve worked with franchisees of all shapes and sizes—from single-unit operators opening their first Chick-fil-A to regional pros building out territory deals for national QSR and C-store brands. And if there’s one thing I’ve learned, it’s this: the best results happen when developers and franchisees grow together.

The typical view is that franchisees lease space and developers build it. But the truth is, there’s much more value when both sides think long-term and act like strategic partners. This approach—what I call the franchise flywheel—creates momentum that benefits everyone involved: the operator, the developer, the brand, and the local community.

Here’s what I’ve learned about making that flywheel turn.

Think Beyond the First Deal

Most franchise growth strategies start with one unit. A new operator secures their brand agreement, gets financing lined up, and starts looking for a site. As a developer, you can either treat that deal like a one-off—or you can think bigger.

At MX Properties, we always ask: What’s your multi-unit plan? If a franchisee has rights to five locations over three years, we want to be part of that roadmap—not just the first pin on the map. That means identifying potential sites in key trade areas, mapping them against growth corridors, and offering flexible terms that support rollout.

When you align early with a growing operator, you become more than a landlord. You become a scaling partner—the one who understands their goals, anticipates their needs, and helps them execute faster and smarter.

Site Bundling: Faster Growth, Lower Friction

One of the most effective ways to help franchisees scale is through site bundling. Instead of sourcing and negotiating one location at a time, developers can present multiple qualified sites in different stages of readiness—some permit-ready, others in entitlement, and a few in pipeline.

This gives franchisees a portfolio view of their expansion, which:

• Helps them plan hiring and financing
  
• Creates consistency in buildouts
  
• Accelerates brand approvals
  

For us, it also reduces vacancy risk and increases the value of our portfolio by securing multi-unit commitments with strong operators.

This strategy works best when developers know their markets well—especially in states like Florida, where suburban growth can turn farmland into fast food gold in a matter of months.

Invest in Local Relationships

National brands might sign the leases, but it’s the local franchisee who makes or breaks the site. These are the people hiring staff, running operations, and engaging with the community.

Developers who take the time to build relationships at this level—listening to concerns, adjusting layouts to match operational flow, even helping with things like signage or trash enclosure placement—set the stage for long-term success.

In many cases, those small adjustments are the difference between a franchisee opening on time and under budget—or dealing with delays that cost them dearly.

We’ve had operators come back to us for their second, third, and even fifth site because they remembered the partnership mentality we brought to the first deal.

Market Forecasting: Data + Intuition

Franchisees often look to developers for local knowledge. They may be experts in the brand, but they’re not always experts in the region.

That’s where we bring value—not just with demographic reports, but with real boots-on-the-ground insight.

We look at:

• Residential building permits and school development
  
• Traffic pattern shifts and new road projects
  
• Retail void analysis and underserved trade areas
  

Combined with years of experience in Florida’s submarkets, this helps us steer franchisees toward the right site—not just the available one. In some cases, we’ve helped operators avoid costly missteps by showing them how a seemingly prime corner will be obsolete once a new bypass road opens nearby.

Good forecasting helps both sides win: it reduces vacancy risk for us and improves store-level profitability for them.

Co-Investment: Skin in the Game

In some cases, especially with proven multi-unit operators, we’ve explored co-investment models. These can range from small equity shares in a specific site to larger JV agreements across a territory.

This works when:

• The franchisee has experience and capital
  
• The brand has a solid growth plan
  
• The trust is already established
  

Co-investing creates alignment. The operator is more invested (literally) in the site’s long-term success, and the developer benefits from the franchisee’s operational insight and performance track record.

It’s not for everyone, but when it works, it turns the flywheel faster—allowing both parties to expand without constantly reinventing the wheel.

Build the Flywheel, Not Just the Pad

In real estate, there’s always the temptation to focus on the deal in front of you. But the developers who succeed long-term are the ones who think bigger—who understand that the second deal is usually more valuable than the first.

By treating franchisees as growth partners—not just tenants—we’ve built relationships that have fueled MX Properties for decades. And in return, our operators have been able to grow faster, with less friction, and more confidence in their development path.

The franchise flywheel isn’t magic. It’s just good business: built on trust, planning, and shared goals.

If you’re a developer looking to grow your portfolio—or a franchisee looking for a true partner—find someone who sees beyond the pad site. Because the real value lies in what you build together.