Why Consulting Firms Are Building Their Own Franchise Systems

Consulting firms have been on a buying spree — law firms, banks, data centers, even coffee shops. But a quieter, more structural trend is emerging: they're building franchise systems. Lucas and Luna look at how Deloitte's 'Deloitte & Touche' franchise model for its tax practice in certain regions is being replicated across professional services. They discuss the economics of franchising expertise — why a firm like McKinsey might license its methodology to local partners rather than open its own offices. Specific numbers: franchise royalties typically run 6-8% of revenue, and a well-run franchisee can hit 20-30% margins on consulting work. The episode also touches on how this shift changes talent models and quality control. It's a contrarian take: instead of consolidating, some of the biggest firms are unbundling and distributing their brands through franchised networks. #Consulting #Franchising #Deloitte #McKinsey #ProfessionalServices #BusinessStrategy #BusinessModel #SharedServices #ServiceBusiness #FranchiseSystem #Licensing #QualityControl #Talent #GrowthStrategy #Business #Finance #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo