PE Profit Ladder Articles
Why A Franchise’s Reputation in the Lending Community Is a Signal to Private Equity
Consider lender feedback a harbinger of PE feedback. If you can’t convince lenders to underwrite franchisee growth, you’re unlikely to convince PE buyers that you're a must-have asset. Do you know what your FRANdata FUND score is?
There Are No Franchise Lifeguards, and Don't Expect Private Equity to Save the Day
No lifeguards. Longer hold times. If it looks and smells like a "project" don't expect buyers to line up. This also applies to re-trades. This month in Franchise Times.
Big Money in Franchising Wins Silver in Axiom Business Books Awards
Founded in 2007, the Axiom Business Book Awards recognize outstanding new titles that drive professional growth and inspire positive change. In a landscape where leadership and innovation are crucial, these awards highlight books that serve as valuable resources for enhancing business acumen, fostering collaboration, and inspiring transformation. Whether through promoting effective strategies, encouraging entrepreneurial spirit, or advancing ethical practices, the Axiom Business Book Awards celebrate the creativity and ingenuity behind influential works in the business sector.
Multi-Unit Franchise Update
Update on multi-unit franchise ownership: Systems with scale continue to see consolidation over time as operators leverage best practices and efficiencies to build valuable, high-performing platforms. PE invests ...but they are not operators themselves! They want to back great operating talent who can improve the business and nurture a winning culture in a tough labor environment.
Emerging Brand Churn Remains Problematic - We Can Reduce It
Emerging franchise churn. The market has gotten much tougher for new brands to break out. Our launch and support bar needs to be higher. Don't help - launch - write an FDD - or sell - a concept that should never have been franchised in the first place, or which is under-capitalized and thus has little ability to provide adequate franchisee support. Some suppliers have tremendous direct power over the shape of franchising - good and bad. Others in the franchise ecosystem have indirect power via their support of the leaky engine by taking advertising dollars, consulting, conference fees, and memberships from the first group even when there are signs of trouble. What role does your organization play? Does your revenue model make franchising stronger and better?
Alicia Miller Joins FRANdata as Managing Director
FRANdata, an industry-leading research and advisory firm offering market intelligence that enables clients to grow their business in franchising, is pleased to announce the appointment of Alicia Miller as Managing Director. In her new role, Miller will drive the expansion of FRANdata’s advisory practice, working with private equity investors, PE-backed franchisors, and multi-brand platforms to further enhance client growth and investment performance.
Multiply Your Success In Franchising Podcast
This podcast goes deep on what private equity wants to acquire, and avoids, in the franchise sector. So much has changed in franchising! We talk about the investment ladder and who/why is interested at various inflection points along the way. Emerging brands need to be prepared to go it alone for awhile! What should founders think about far in advance? Franchisees also need to think about their exit strategy upfront. Is PE active in your system as a consolidator? What happens when PE becomes a major force at the franchisee level in scale systems?
Why Brands Can't Find PE Buyers - and Why It May Improve Franchising
Private equity has been active in franchising since the early 1990s. A PE-exit, not an IPO, is now the dominant exit-method for scale franchise businesses. Yet fewer than 20% of active brands have worked with a PE partner. After all this time, why isn't the ratio 30/70, 40/60 or better? What is blocking this option for many in the "long tail" of unaffiliated concepts? Not all want a PE partner of course. But lack of desire neither explains the current ceiling of 4,000 active brands, nor the 20/80 ratio. Market signals are clear for those willing to hear the feedback and make changes. Franchising would benefit if more brands used the PE buyer lens to self-examine and make improvements.
Society Podcast
In this episode we talk about private equity in franchising, entrepreneurship, what franchisors get right and wrong, what PE looks for, the importance of building a personal advisory board, and the breadth of support that can be found within the franchise community.
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PRIVATE EQUITY’S IMPACT ON FRANCHISING
EMERGING BRANDS
TRENDS
BUILDING SMART
PROSPECTIVE FRANCHISEES
TURNAROUNDS & CASE STUDIES