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Private equity firms are leveraging technology across franchise portfolios to enhance unit economics and build scalable businesses.
Owning a piece of a franchise can be appealing to investors who aren't ready to take on an entire business, but there are important differences in how ownership, returns and control work.
Minority investments can provide businesses with capital, liquidity and support without a majority sale. However, the terms of these agreements can significantly affect an owner's control.
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Frankel's investment in Nothing Bundt Cakes shows how private equity can help franchise brands improve operations, support existing owners and prepare for continued growth.
A second concept can spread technology and back-office costs across more units, but the savings depend on what the two brands actually share.
Firms can now identify acquisition targets months before a sale process begins. The harder question is which signals actually mean something.