PE Profit Ladder Articles
In A Crowded Field Of Emerging Franchises, Only The Strongest Brands Thrive: Intense Competition Keeps A Lid On New Concepts, Thanks To Private Equity
According to FRANdata, an average of 250 new franchise brands have launched every year in the U.S. since 2001. That's as many as 5,250 brands launched over the last 21 years. Yet in 2022, FRANdata counted only 4,000 total active franchises — up from 3,000 in 2010, which was flat also at 3,000 back in 1990. So, where did all those emerging brands go?
Use This Checklist To Avoid Buying A ‘Zombie’ Franchise
Here are 20 questions that will save you time and money. There are great franchise options out there, but you must do your due diligence.
Higher Acquisition Prices Bring More Growth Pressure to Franchise Sector
The acquisition market has been hot lately. The value of U.S. mergers and acquisitions in 2021 across 7,896 transactions reached $2.6 trillion, 30 percent above the previous record set in 2015. In the first half of 2022, the market pulled back, dropping 29 percent year-over-year, but this is still strong by historic standards.
Thinking Of Selling Your Franchise To A Private Equity Firm? Here Are 9 Ways To Build A Valuable Reputation
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.
Emerging Brand Missteps Happen. Here Are Ways To Avoid Them
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.
Franchising Isn’t For Entrepreneurs, It’s For Systempreneurs
First determine if you can follow a system, then find the right system for you.
Are You A Resilient Franchisee? Let’s Find Out
Preparation and mindset make you a better franchise candidate as well as entrepreneur.
Don’t Get Caught on the Wrong Side of This Odd Franchising Phenomenon
Why does the same franchise opportunity look simultaneously compelling and questionable, depending on who you ask?
Take Care When Moving Franchise Candidates Forward In Uncertain Times
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.
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PRIVATE EQUITY’S IMPACT ON FRANCHISING
EMERGING BRANDS
TRENDS
BUILDING SMART
PROSPECTIVE FRANCHISEES
TURNAROUNDS & CASE STUDIES