The capital infusion private equity brings to the franchise industry is an exciting way to grow for many brands, so long as they're willing to open themselves up to outside influence.
The relationship between franchising and private equity is a complex one that only continues to pick up steam in our industry. As more and more franchisors explore private equity investments as a growth vehicle, it's worthwhile to explore what these relationships actually entail.
Brands engage in conversations with private equity when they're in search of a few things-namely, the chance to scale faster than they would be able to otherwise. Private equity provides franchise brands with access to capital, ample resources in the form of vendor relationships and support teams, and the goal of accelerated growth.
