
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.

It has been said that Australia is a franchise nation. Recently, my family and I were lucky enough to travel to Australia for vacation and we saw this firsthand. One of the things I most like about the franchise business model is how well the model travels and can be customized by entrepreneurs to local market preferences.

Private equity investors have a specific playbook to lift emerging franchise brands. These new brands share common challenges that do not dissuade the subset of private equity buyers and platforms that are open to working with smaller brands. Some of these challenges are both anticipated and somewhat attractive to these specific groups.

Responsible franchising. What does that mean to you and your franchise system?

Stepping in to run a business that's already producing cash flow may be a better fit and less risky for many prospective franchisees.

Here's what you need to know before making the decision to become a multi-unit operator for an emerging brand.

Most private equity investors in franchising are growth investors. A few are turnaround specialists. But it is relatively rare to find both skills in the same firm because investing mandates and timelines are very different.
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PRIVATE EQUITY’S IMPACT ON FRANCHISING
EMERGING BRANDS
TRENDS
BUILDING SMART
PROSPECTIVE FRANCHISEES
TURNAROUNDS & CASE STUDIES