Franchise Investments

Based on our team’s years of franchise investing expertise, we use a variety of criteria to select which franchises to invest in. These include ROI, growth, availability, leadership, sustainability, competitive environment, and recession and pandemic resistance.

For a more detailed explanation, feel free to check out our “How We Invest” page.

Franchise ownership is designed as a long-term investment strategy. Although we cannot guarantee liquidity, FranShares is in the process of developing a secondary trading platform to facilitate liquidity. We generally recommend that investors be prepared to hold their investments for a period of five years or more to fully reap the benefits of this asset class.

Each portfolio is tailored to suit the unique circumstances of the investment type. For an income fund, we aim to hold the portfolios for 10 to 15 years. In the case of a growth fund, we aim to maintain a minimum holding period of five years, with an anticipated sale within a five- to seven-year timeframe, subject to franchisor approval. Upon a sale, we would distribute a portion of the net buyout proceeds to each investor, based on their ownership share in the fund. We encourage investors to diversify their holdings, including by reinvesting into various other FranShares funds.

For decades, private equity firms have been acquiring profitable franchises and transforming them by leveraging outsourced franchise management companies, or building in-house franchise management teams.

FranShares will be taking a page from the private equity book of franchise management by working with proven franchise management companies, or operators with a strong track record of success to manage each franchise location.