PE Profit Ladder®

The problem: Most franchises never break out and also don’t have much of an exit path.

More than 50 books have been written on franchising and franchise best practices. There are numerous classes and certifications available, as well as many articles and online resources.

Yet with all of this good information and with more than a century of franchising to tap into, why have 4,000 brands (according to FRANdata) stopped franchising? And why do an estimated 42% of currently “active” franchises of all sizes and types have either flat or declining unit count (according VettedBiz) over the last three years? Either founders and leaders aren’t getting the information they need to make good strategic choices, or that information isn’t delivered in a way that is actionable.

Many founders and leaders, especially of emerging brands, want information and help. But current solutions don’t meet their needs. And for those brands hoping private equity will come in and provide assistance, the reality is that PE tends to avoid turnarounds. And even brands that have achieved modest scale are often surprised to find lackluster PE interest when they try to bring the business to market. Only 14% of brands have attracted PE. Without a change in approach, the majority of brands will never find a capital partner and won’t be able to grow their way onto PE’s radar.

The PE Profit Ladder® provides a unique solution.

The PE Profit Ladder® program delivers subscription-based growth & transformation coaching aligned to private equity buyers' criteria. Our proprietary approach is smart, strategic, mission critical, and accessible. It is designed for franchise founders and leaders who seek to significantly improve enterprise value and create a brand that commands both prospective franchisee and private capital attention.

• Our strategy blends franchise best practices with the due diligence lens of private equity. This is a critical distinction now that PE is the dominant force in franchising. Building right from the beginning with an eye to what PE most values (and is willing to pay for) and creating the right supporting data to tell a strong story about your business is critically important foundational work. We assess your business from a potential buyers’ perspective to make strategic and tactical recommendations on where and how to strengthen your assets and results. Whether you decide to eventually partner with PE or not, our process drives improved enterprise value, team effectiveness, and franchisee satisfaction.
• Our delivery approach is flexible. Supporting materials are available 24x7. Coaching and strategy sessions are organized around a proven value-creation agenda and delivered around your busy schedule. We work at your desired pace! These sessions are high impact, provide you with a clear framework, and give you an accountability partner and sounding board. 
• We keep you updated on market conditions. PE Profit Ladder® clients receive regular updates on market conditions, valuations, important trends, and deal case studies. This data is often out of reach or only available to M&A insiders. We keep you informed.
• We provide curated referrals. Our network of third-party service providers can address specialist needs or questions. For example, to conduct a legal/regulatory audit, recruit executive talent, determine digital marketing effectiveness, or outsource your new site construction process. Referral partners are carefully selected for their own sector knowledge and best practices as well as their strong track record in franchising.
• Discounts and access. Many of our partners offer discounts and special access privileges to PE Profit Ladder® clients.
• If desired, we can also make introductions to potential private capital partners, M&A advisors, and those who have been through a PE transaction. You cannot start networking or understanding the landscape too soon! It is an important part of your overall knowledge and preparation. But your approach and advance preparation together make all the difference. You need a solid plan.
• Best of all – the PE Profit Ladder® is subscription based! We avoid heavy freight, and you don’t have to give up equity or profit sharing to get the information and help you need.

PE Profit Ladder® modules are structured around the following topics:

• Step #1

  Understand the Market

• Step #2

  Guided Diagnostic

• Step #3

  Create a Prioritized Strategic Action Plan

• Step #4

  Execution and Ongoing Support

• Step #5

  Change Management and Effective Franchisee Communication

• Step #6

  Understand and Avoid Derailers

• Step #7

  Smart Preparation: Before Bringing Your Business to Market

Contact us to learn more