Investing in Franchises – Session Two

By Rick Ormsby
Managing Director
[email protected]

Session Two is a much deeper dive into the particulars of franchising. Below is a quick snapshot of some considerations that helps to lead a prospective investor or operator to a brand that might best fit their future:

  1. What size franchise business do you want to operate on a unit-level basis?
  2. Discussion of the key financial metrics on each franchise system.
  3. Age of the franchise system and consolidation opportunities.
  4. Remodeling programs explained for each brand – and how they impact the future.
  5. EBITDA multiples paid by-brand in the current marketplace.
  6. Demographics and consumer preferences. What does the future look like for your customers?
  7. In restaurants, QSR vs. fast casual vs. casual dining vs. fine dining. Who do you want to be?
  8. Daypart analysis.
  9. Acquisition size requirements –price and # of units.
  10. Geography – one area with one brand, one area with different brands, or nationwide with one brand?
  11. Speed of acquisition – how soon do you want to own the units? Harder to find one brand in one area only if your initial investment needs to happen quickly.
  12. Management expertise needed?

After Session Two, almost all clients have self-identified 2-3 brands in a certain geography with a definitive target for acquisition size. They then start understanding the capital needed, timeline, management expertise required and process for making their first investment. After that comes the most important part – finding the right deals to fit their interests.

At Unbridled Capital, we love having these types of discussions. Franchising, M&A, strategy and capital raising are our unique areas of expertise, and we would be honored to talk with you about how we can help identify franchising options for your future.

Rick Ormsby
Managing Director
[email protected]