Having worked with dozens of franchisors small and large, 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. Building a franchise system from scratch in the U.S. market requires significant investment and our work with leading Private Equity firms, as well as boutique investors, gives our clients a true competitive advantage at the critical launch phase.

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 a solid alternative.

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 partners who could assist us to help our clients get over the funding hump. Our capital resources have a true passion for US launch projects, and they see the growth potential of early-stage franchisors, as well as emerging franchise suppliers in the franchisor space.