---
title: "2022 AFDR, Part 6: Use of Brokers"
url: https://burnaze.com/article/823b8224-5d64-4a52-8889-f0adad2c9ea0
source: "Franchising.com"
original_url: https://www.franchising.com/articles/2022_afdr_part_6_use_of_brokers.html
author: "Eddy Goldberg"
category: "Suppliers"
industry: "Franchise Industry"
segment: "Suppliers"
topics: ["Finance & M&A"]
published: 2022-03-01T10:00:00.000Z
modified: 2026-11-01T02:09:07.138Z
image: https://imgs.franchising.com/art/articles/6583_plate.jpg
---

# 2022 AFDR, Part 6: Use of Brokers

**TL;DR:** The 2022 Annual Franchise Development Report found that 49% of brands used brokers in 2022, paying an average commission of $20,000. Half of the brands surveyed used brokers and 68% closed a deal through a broker in the past 12 months.

*By Eddy Goldberg, originally published in Franchising.com on 2022-03-01. [Read the original](https://www.franchising.com/articles/2022_afdr_part_6_use_of_brokers.html).*

## Story

Highlights from the 2022 Annual Franchise Development Report (AFDR) were unveiled at the Franchise Leadership & Development Conference (FLDC) in October. Participants consisted of franchisors that completed an in-depth online questionnaire. Responses were aggregated and analyzed to produce a detailed look into the recruitment and development practices, budgets, spending allocations, and strategies of a wide cross-section of franchisors.

The data and accompanying commentary and analysis provided the basis of the 2022 AFDR. Highlights from the report were presented in a general session by Franchise Update Media EVP and Chief Content Officer Diane Phibbs and Wild Birds Unlimited CDO Paul Pickett. This series features selected highlights.

All conference attendees received a complimentary copy. This was the second year the AFDR asked participants about brokers: if they used them, how much they paid, what results they found, and their plans to use them in the future. Half (49%) of brands in the survey used brokers, and 7 in 10 (68%) said they’d closed a deal through a broker in the past 12 months.

As shown in the graphic, 7 of 10 respondents (69%) paid fees to a broker network, with and average broker commission of about $20,000 for a successful signing. The leads-to-close ratio for brands working with brokers in 2021 was 17%, compared with the 3% ratio brands reported for bringing their own leads to closing. Respondents reported that 4 in 10 (39%) brokers brought the lead through the pipeline to a successful close.

Results vary, of course, by brand, by sector, and by franchise fee – as well as by the relationship brands establish with the brokers they employ. Still, it’s no surprise that brokers specializing in franchising have a higher success rate than those who don’t. But there’s a price to pay.

## Entities

- Franchising.com (publication)
- Franchise Industry (sector)
- franchise development (topic)
- Eddy Goldberg (person)
- franchise fees (topic)
- Wild Birds Unlimited (company)
- Paul Pickett (person)
- Diane Phibbs (person)
- use of brokers (topic)
- broker commission (topic)

---
Originally reported by Eddy Goldberg, Franchising.com (https://www.franchising.com/articles/2022_afdr_part_6_use_of_brokers.html). Summarized by Burnaze (https://burnaze.com/article/823b8224-5d64-4a52-8889-f0adad2c9ea0).