FranLaunch USA In Partnership with Alchemi Capital

 

Creating a new and innovative management and capital solution for both emerging U.S. concepts as well as established international brands. 

A New Solution Created

Innovative, flexible and timely.

In September 2019, FranLaunch USA became the exclusive Venture Partner of Alchemi Capital for projects in the franchise space. This partnership provides a new and innovative approach to funding for early-stage franchisors and suppliers to build their businesses without fear of being under-capitalized. Our unique capital services solution leverages the strengths of both FranLaunch and Alchemi. 

Over 100 Years of Combined Franchise Expertise

FranLaunch USA serves as an extended executive team for our franchise industry clients, bringing not just capital but overall franchising know-how. 

A Flexible Approach to Growth Capital

Alchemi Capital’s approach is to be flexible, including minority equity solutions and debt funding packages, typically starting at $500k to $5m. 

Resources of the Alchemi Ecosystem

Our clients enjoy discounted access to a deep network of business optimization tools through Alchemi’s network of in-house management companies and channel partnerships.

The Money Tree

Having worked with dozens of franchisors, small and large, at FranLaunch USA, we understand that money doesn’t grow on trees. A franchisor needs to invest wisely for healthy growth and return-on-investment, while keeping a close eye on cash flow. That said, there’s also a very real danger to emerging franchisors who try to bootstrap it and cannot commit the growth capital to build a franchise system in the right way. The same is true of international franchises trying to enter the U.S. market for the first time. Bottom line, building a franchise system from scratch in the U.S. market requires significant investment in legal work, personnel, training systems, business infrastructure and marketing funds required to get off to a strong start.

 

The Funding Conundrum

The challenge for early franchise projects in the U.S. is that funding is hard to find until your franchise system has reached a critical mass of franchised units with strong financial performance. Traditional debt financing results in – well – big debt, which can be a boat anchor for emerging franchisors. As for equity financing, most private equity firms in the franchise world will tell you, “We don’t do startups,” and they refuse to consider investments of less than $10 or $20 million plus. And when they do invest, they typically want majority control. We offer an alternative.

The FranLaunch-Alchemi Capital Solution

FranLaunch USA felt the pain of our franchisor clients, who were forced to launch their U.S. franchising program on a shoestring budget. So we searched high and low for a capital partner, who could assist us to help our clients get over the funding hump. And in early 2019, we found the ideal partner. Alchemi Capital has a true passion for startup projects, and they see the growth potential of early-stage franchisors, as well as emerging franchise suppliers in the franchisor space. With a flexible approach to funding, Alchemi has the ability to offer growth capital packages (including both equity and debt financing) starting at $500,000 with the ability to scale to several million in different stages of the business growth lifecycle.

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