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.
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.
Carl's Jr. & Hardee's to Separate
It appears that after years of attempting to reboot both brands, the split of Hardee's and Carl's Jr. will hopefully create more focused marketing to drive traffic. It also makes it easier to sell each brand or transfer one of them to one of Roark's portfolio companies should Roark wish to do so. For more, see the CKE Restaurants case study in my book: Big Money in Franchising (available on Amazon).
Mastermind Minutes Interview - PE's Impact on Franchising
Mastermind Minutes Interview - PE's Impact on Franchising
PE Profit Ladder Market Watch Newsletter: Subway Emphasizes International, Pending Roark Acquisition
The PE Profit Ladder is at work at the top end of the market as well. Predictably, Subway is focused on recruiting experienced QSR MUOs to build out international markets to off set US closures. The international opportunity is indeed tremendous. Experienced turnaround CEO John Chidsey has made good progress so far on the plan. It is interesting that in recent interviews (e.g. Yahoo Finance) he mentioned how he appreciated having no debt when privately held...which allowed him to invest in the business and do some things needed to support the brand turnaround. That will certainly change under Roark, which is likely to put a massive amount of debt on the books and take a big cash distribution within 6 months of the acquisition. #peprofitladder
Turnarounds Show Franchising’s Resilience and Sponsor Commitment to Change.
One of the most compelling things about franchising is that lagging or failing brands CAN be reinvigorated. Franchising is incredibly resilient in that way.
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PRIVATE EQUITY’S IMPACT ON FRANCHISING
EMERGING BRANDS
TRENDS
BUILDING SMART
PROSPECTIVE FRANCHISEES
TURNAROUNDS & CASE STUDIES