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Private credit is giving franchise investors another way to finance acquisitions, add-on deals and unit growth without relying solely on traditional banks or additional equity.
Private equity investors are weighing ESG initiatives by their impact on daily operations, efficiency, resilience and the long-term value of franchise businesses.
Jones explains why sophisticated operators are increasingly treating franchises less like small businesses and more like scalable investment platforms.
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Emerging funds are finding opportunity in smaller brands with strong unit-level economics, healthy franchisees and growth potential that has yet to be fully realized.
Scott Oaks of Comfort Keepers says franchise founders should have real unit performance and a proven model in place before bringing in an outside investor.
To attract private equity, franchisors need to prioritize building long-term value through strong unit economics, scalable operations, and collaborative franchisee relationships over mere growth.
Knowing how private equity funds are structured can help franchise owners evaluate buyers, negotiate better deals and know what to expect after a sale.