How has private equity changed due diligence for prospective franchisees? Listen to my interview with Franchise Times Editor-in-Chief Laura Michaels to kick off the FT Investment Show.
The market is tight for the best retail locations and construction costs are up. Real estate expert Jonathan Hill shares what growth-focused franchisors can do to keep franchise development on track.
How are you "showing up" mentally to the franchise search? Are you pressure testing your thinking and assumptions? You can adopt PE's mindset to make better decisions when investigating franchise concepts.
With the $30M sale of Smokey Bones to FAT Brands, Sun Capital Partners has exited franchising. Sun Capital acquired Smokey Bones for $80M in 2007 from Darden Restaurants, and used to be a prolific franchise and restaurant investor. It had notable successes, but also a string of restaurant bankruptcies on its watch.
One of the most compelling things about franchising is that lagging or failing brands CAN be reinvigorated. Franchising is incredibly resilient in that way.
Housing is coming back; franchise candidate interest remains steady. … Franchisees remain stressed about costs but the labor situation is improving.
This simple list should be at the root of every decision you make about building your brand until you decide to sell or bring in a private equity partner.
It takes time for new franchise brands to reach the point of royalty self-sufficiency (the point at which recurring royalty revenues pay for corporate overhead). Because the market is so competitive and because emerging brands often launch undercapitalized, many emerging brands outsource some, or all, of their franchise recruiting.
A successful private equity transaction for your franchise business means bringing on the right strategic thought partner.
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PRIVATE EQUITY’S IMPACT ON FRANCHISING
EMERGING BRANDS
TRENDS
BUILDING SMART
PROSPECTIVE FRANCHISEES
TURNAROUNDS & CASE STUDIES