PE Profit Ladder Articles
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.
FRANdata's 2025 Franchise Economic Outlook Report Is Available
FRANdata's 2025 Franchise Economic Outlook Report is the most comprehensive annual update on the "state of franchising" available.
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.
FranDevCo Acquired by PE-Backed Franchise Growth Platform
As Mark Twain said "During a gold rush, it's a good time to be in the pick & shovel business." Franchise growth enablers remain a hot sector within franchising. L2 Capital's Full Spectrum Franchise Consulting announced today it acquired FranDevCo, a franchise sales organization. We can expect more M&A activity and consolidation among franchise growth enablers.
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.
Optimism for 2025 Restaurant Finance and M&A
After a slower than usual year (despite some big headline deals) we expect restaurant dealmaking to pick up. And at the unit level, systems shouldn't ignore ongoing acquisition entrepreneur demand. There are searchers with capital looking for chunky assets to buy and strong systems that are open to consolidation. Make sure your website has a landing page specific to acquisition entrepreneurs so they know what resale opportunities are coming available.
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PRIVATE EQUITY’S IMPACT ON FRANCHISING
EMERGING BRANDS
TRENDS
BUILDING SMART
PROSPECTIVE FRANCHISEES
TURNAROUNDS & CASE STUDIES