
Private equity (PE) firms are watching your franchise business — right now. If you want to eventually exit via a private equity buy-out, you must build a valuable reputation.

Most of the challenges encountered by young franchise systems can be avoided with planning and following best practices. Common routes to trouble include the failure to ensure strong unit level economics, charging too much or too little in franchise royalties and fees, or launching into franchising undercapitalized. Early systems can also end up recruiting the wrong franchisees and end up tangled in litigation.

First determine if you can follow a system, then find the right system for you.

Preparation and mindset make you a better franchise candidate as well as entrepreneur.

Why does the same franchise opportunity look simultaneously compelling and questionable, depending on who you ask?

Prospective franchisees have many things to consider as they go through due diligence. The market environment is one major factor. During the pandemic, some candidates put their decisions on hold. Many came roaring back as the job market shifted and people started looking for entrepreneurial opportunities.

Do your homework on the franchise that interests you. Then move forward with confidence.

Thinking big is a catalyst for better decisions and outcomes. Here's why.

High costs and increased regulation threaten to shrink the franchise footprint in some states. During the pandemic, FRANdata noted the 13 registration states suffered more unit losses, dropping 3.2 percent compared to 2.4 percent in non-registration states in 2020 compared to 2019.
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PRIVATE EQUITY’S IMPACT ON FRANCHISING
EMERGING BRANDS
TRENDS
BUILDING SMART
PROSPECTIVE FRANCHISEES
TURNAROUNDS & CASE STUDIES