Beyond the Arches #40: Stocks react to world events in the first weeks of 2025. Franchise investment could provide stability through diversification. 

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The tumultuous week isn’t over for the stock market. After notching record highs, the S&P, Nasdaq, and Dow delivered mixed results, with the S&P 500 closing up more than 0.1%. The Dow added 0.25%, or about 100 points, while the Nasdaq flatlined, in part due to downshifting Nvidia stock prices in the wake of its (lack of) CES announcements. Other factors, such as the incoming December jobs report and more talk of tariffs, also contributed to the lackluster performance across the major indices. 

Bitcoin continued its dip, closing below $93K in a selloff affecting most of the major coins and mining stocks. The 10%, two-day BTC drop neutralized its early 2025 gains. Similar to the public markets, some of the sell-off activity stems from talks of extreme tariff actions, surging bond yields, and uncertainty over future Fed actions. Some analysts believe the fall is a temporary reprieve in advance of a rally. 

Three exciting FranShares investment opportunities

• Kidokinetics offers accredited investors the opportunity to participate in a $1M capital raise for this franchisor to fuel expansion and enhance the franchisee network
• Bravehart Development presents accredited investors with the opportunity to invest in the first tranche of an investment featuring 10 Hawaiian Bros brand locations.
• Sloan Capital presents accredited investors with the opportunity to invest in this offering, which includes 24 locations of the brand Everbowl.

On Our Radar This Week

• In a major announcement out of Canada, Prime Minister Justin Trudeau intends to step down after his embattled Liberal party selects new leadership. The end of Trudeau’s nine-year tenure reflects not only in-party battles but a larger shift in public sentiment. 
• Indonesia has become a member of the Brazil, Russia, India, China, and South Africa (BRICS) economic bloc. The move cements Indonesia’s interest in aligning with other emerging economies at a time when the global economic stage is in flux. Recent U.S. tariff discussions have included disapproval of the BRICS block, with threats of 100% tariffs on participating nations attempting to undermine the U.S. dollar. 
• Union leaders representing U.S. dock workers have reached an agreement and narrowly avoided a second strike in major U.S. ports. The threat of a strike came after failure to negotiate salary and terms in a six-year contract. One contentious issue – automation use on the job – has the potential to impact the industry by replacing workers with robots. The tentative agreement would preserve jobs while allowing automation to create efficient and modern port services.

Macro Bites

• Nvidia’s stock down as the CES speech lacked one big thing: Nvidia’s failure to discuss its post-Blackwell chip development as many had expected during the talk. 
• Medical debt to be banned on credit reports. The move is aimed at removing creditors’ ability to use the threat of bad credit scores as leverage for repayment. 
• Getty Images will acquire Shutterstock to create a $3.7B firm. The new brand will be billed as a “premier visual content” provider.  

Start passively investing in franchises today!

Accredited and non-accredited investors can invest in our latest offering, TNT Franchise Fund Inc., today! 

TNT Franchise Fund Inc. is a diversified portfolio of up to 30 Smash My Trash locations and 25 Teriyaki Madness outlets throughout the United States.

With its patented waste compaction service, Smash My Trash is disrupting the $1.6 trillion waste management sector. By compacting waste in open-top dumpsters to reduce waste volume, customers save money (up to 20% of waste removal costs) and reduce their CO2 emissions by up to 65%.

Teriyaki Madness stands out with its fresh, made-from-scratch meals and a lively, inviting ambiance, revolutionizing the fast-casual Asian dining scene. Its surging popularity is evident on platforms like Yelp, Facebook, and Google, where an increasing community of enthusiasts sing its praises.

Highlights:

• Target locations: Up to 55
• Smash My Trash per-location economics: $885K in revenue with 28% EBITDA after 16 months of operation
• Teriyaki Madness per-location economics: $1.16M in revenue with 20% operating profit

As the Smash My Trash and Teriyaki Madness locations come to fruition, investors in TNT Franchise Fund Inc. can expect to receive excess cash flows from the business operations of the locations on a quarterly basis.

For more information on the offering, contact our team.