Why we’re launching to non-accredited investors
We are thrilled to announce the launch of our first franchise investment offering for non-accredited investors, FranShares TNT Franchise Fund. This milestone is the result of years of hard work by every member of our team and the realization of a deeply held foundational dream.
Our “why”
When we launched FranShares, we committed ourselves to the mission of democratizing franchise investing. That commitment meant finding a way to make this valuable asset class – once the exclusive territory of institutions and the ultra-wealthy – accessible to the average retail investor.
Build generational wealth
The economic landscape has changed. It has become much, much harder for the average individual to own real assets – one look at the state of the housing market confirms that. Franchises are a particularly beneficial asset class that private equity firms and celebrities have used to build wealth for decades. Our aim is to give more people a path to building generational wealth by breaking down the barriers that have prevented retail investors from investing in these real assets.
Empower operators and employees
We also want to bridge the gap between franchise owners and the people working in their locations. Any hard-working individual with drive and desire should be able to envision a pathway from cleaning the floors at a food service franchise to owning and managing multiple units. By expanding access to the investment side of the business, we hope to open more doors for people from all walks of life.
Beyond that, there are legions of incredibly skilled franchise operators with unrealized potential. Managers who are successfully running multiple franchise locations may really know their stuff – but if they don’t come from a business background, they’ll probably have a harder time getting a business loan to kick-start their journey as an owner-operator. We’re making it possible for these talented professionals to take that next step.
Build stronger communities
Our last pillar is really a product of the previous two. When you empower people to further their personal and financial goals while bringing products and services to their communities, you end up with investors who are, well, incredibly invested. These are the kind of retail investors who become early and regular patrons of new franchise locations and brand advocates that will authentically amplify initial and long-term sales. Down the line, this grassroots passion helps build successful businesses that employ locals and create a positive cycle of prosperity and upward mobility.
The FranShares TNT Franchise Fund
While regulatory processes required our first offering to be available only to accredited investors, our goal has always been to prepare offerings that allow everyone to invest regardless of their accreditation status – and we are now doing that through the FranShares TNT Franchise Fund.
Our new offering is a diversified portfolio of up to 55 franchise locations from two award-winning franchises, Smash My Trash and Teriyaki Madness, across ten major metro areas across the U.S.
About Smash My Trash
- Smash My Trash is a nationwide service that is disrupting the $1.6 trillion waste management industry. Its patented mobile waste compactor vastly reduces dumpster waste volume and saves clients at least 20 percent on waste management costs.
- Each Smash My Trash low-overhead business requires just two to four employees per location. They sell 12-month contracts to companies in the construction, manufacturing, trucking, distribution, and other industries, while maintaining an incredibly low churn rate.
- Historically, Smash My Trash locations have generated revenue of $885K and achieved 28 percent EBITDA after just 16 months of operation, according to the 2022 financial disclosure document provided by Smash Franchise Partners, LLC (the franchisor for the Smash My Trash brand).
About Teriyaki Madness
- Teriyaki Madness (TMAD) is an award-winning restaurant brand at the forefront of Asian and fast-casual cuisine – two of the fastest-growing segments in the restaurant industry.
- Locations offer quality, fresh, healthy, and flavorful Asian food that appeals to a broad spectrum of customers across many demographics, including millennials.
- Historically, Teriyaki Madness locations have generated revenue of $1.16M with profit margins of up to 20 percent, according to the 2022 Financial Disclosure Document provided by TMAD corporate.
Smash My Trash and Teriyaki Madness were selected after undergoing a vigorous, eight-step vetting process. (Fewer than 1 percent of the deals that come across our desk reach our platform.) The FranShares investment team searched for fast-growing franchise brands with proven business models that had yet to be saturated. Both Smash My Trash and TMAD have more than 100 locations in development, which places them among the top 15 percent largest franchise brands.
How we manage locations
For decades, private equity firms have been acquiring profitable franchises and using outsourced franchise management companies, or building in-house franchise management teams. FranShares is taking a page from the private equity book of franchise management in an effort to maximize our franchises’ ROI.
For Teriyaki Madness, we’ll build and manage each franchise location by partnering with proven Teriyaki Madness franchise owner-operators. The Smash My Trash team provides unparalleled support to its franchisees and is not an employee-heavy business model. Therefore, we will hire an in-house general manager to build out a team of regional and location managers to run the franchise.
This approach means investors can diversify their portfolios with the equity appreciation and low volatility of franchises, while taking an entirely passive income approach.
How to join the FranShares TNT Franchise Fund
We’re in the business of disrupting and democratizing the franchise investing space, but we also want to make sure we’re protecting our clients in the process. For that reason, this opportunity is being offered through Securitize Markets, LLC, which is a member of both the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC), as well as registered with the U.S. Securities and Exchange Commission (SEC).
That said, joining the fund is simple. Head over to the FranShares TNT Franchise Fund Securitize page, create a free account, and indicate your desired investment amount to start the investment process. You can also invest with a Rocket Dollar IRA Account.
About Us
FranShares is the first platform that makes franchise investing easy. We empower retail and institutional investors with the ability to seek diversification and passive income through franchise investing. We combine deep industry expertise with a zero-fee approach to ensure our investors maximize their long-term returns – without the risk of losing their shirts. FranShares is backed by Chicago Ventures, and our advisory board includes the Senior Vice President of Franchise Investment Banking at Houlihan Lokey, along with the co-founder of Ampler Restaurant Group (450+ location franchisee).