PE Profit Ladder Articles
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.
Pizza Factory Acquired by PE-Backed Wonder Franchises
Pizza Factory was recently acquired by Wonder Franchises, backed by Tucker's Farm. Now begins a new chapter 30-year old brand. There are many opportunities in franchising to unlock new growth opportunities with the right support and mindset.
Crumbl Is Reportedly For Sale
It was only a matter of time. Crumbl is reportedly for sale. If they get their hoped for 10x valuation (approx $150M EBITDA) this will be a nice deal. The incoming PE sponsor will bring new eyes, is likely to invest in further growth, and has a predictable playbook. Franchisees in growing systems should always be prepared for the system to trade to a PE sponsor.
Multiply Your Success Podcast
Are you looking to make big money in franchising? And maybe hoping to grow your franchise company to exit to a private equity or venture capital group eventually? This discussion is for franchisors who wish to someday successfully exit.
Franchise Leaders Forum Podcast: Navigating Franchise Exit Strategies & Private Equity
Have you wondered how private equity can transform your franchising journey or why timing your exit strategy is as critical as choosing the right franchise? This discussion shares some golden nuggets on scaling your franchise, understanding private equity’s role and most importantly, planning your exit strategy ahead of time. So, if you are ready to uncover the secrets to scaling, sustaining and successfully exiting your business as well as learning about the financial intricacies of franchising that could be the game-changer for your business then today’s episode is for you! Episode Highlights: • Importance of private equity • Understanding what qualities private equities look for • Have a plan and an exit strategy ready • Financial preparedness and financial challenges • Strategic focus on exit strategies and private equity roles • Viewing a business from a buyer’s perspective • Importance of business valuation • Preparing a business for sale • Strategies for emerging brands when selling • Role of advisors in franchising
Jersey Mike's Sold To Blackstone for $8B
When you build a more valuable business FOR YOUR FRANCHISEES you win at exit. ..."only" 3,000 locations, $1.3M AUV, sold for $8B. Compare that to Subway with AUVs less than half JM's performance, 36,500 locations, sold for $9.6B. JerseyMikes continues to crush it. Now Blackstone simply needs to avoid messing up a great business.
Tropical Smoothie Has a New CEO
The Tropical Smoothie Cafe case study appears in Big Money in Franchising because it shows what can be accomplished when a management team and PE sponsors both put franchisee outcomes and a great culture first. Charles Watson, CFE has had an incredible 16 year run @ TSC, the last 6 as CEO. These are big shoes for the new incoming CEO to fill.
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PRIVATE EQUITY’S IMPACT ON FRANCHISING
EMERGING BRANDS
TRENDS
BUILDING SMART
PROSPECTIVE FRANCHISEES
TURNAROUNDS & CASE STUDIES