Does anyone know of a searcher or fund that bought franchise rights?
November 12, 2018
by a searcher from United States Naval Academy in Denver, CO, USA
I ask because I recently took over as CEO of a franchisor and am wondering whether getting searchers to take down area rights could be a valid channel for growth. The return numbers (based on existing units) for a searcher or capital partner developing additional units provide a compelling return (>30% IRR and 50% yield) when open and cashflowing.
from Boston College in Steamboat Springs, CO 80487, USA
The franchise model solves for a fairly different set of problems than the search fund model. The average search fund acquisition might be an established business with $2M in EBITDA, and the average franchise might have a tenth of that in target EBITDA. Franchises are also 'guided' in the sense that HQ provides a lot of operating and strategic support. So there's a different profile for both the investors and entrepreneurs which I think keeps the two ecosystems from mixing much.
from Harvard University in Boston, MA, USA