Big money in franchising : scaling your enterprise in the era of private equity / Alicia Miller.

Format:

Book

Author/Creator:

Miller, Alicia, author.

Language:

English

Subjects (All):

Private equity.

Physical Description:

1 online resource (296 pages)

Edition:

First edition.

Place of Publication:

Vancouver, BC : Figure 1 Publishing Inc., [2024]

Summary:

Big Money in Franchising by Alicia Miller explores the intricate relationship between private equity and the franchising industry. The book delves into how private equity has come to dominate franchising, offering insights into the motivations of entrepreneurs and investors in this space. It discusses the diverse landscape of private capital, the strategies employed by private equity, and the impact of these strategies on franchise businesses. The author highlights both the positive contributions and potential pitfalls of private equity involvement in franchising. Aimed at entrepreneurs, investors, and business professionals, the book provides a comprehensive guide to understanding the dynamics of private equity in franchising, emphasizing the importance of due diligence and strategic alignment for success. Generated by AI.

Contents:

Intro

Halftitle

Title

Copyright

Contents

List of Tables and Figures

Author's Note: What Is Business-Format Franchising?

Introduction

Understanding and Aligning with Private Equity Is Critical to Your Franchising Success

Is This a Positive or Negative Story? Well, It's Complicated

How This Book Is Organized

What I Want for You

Part One: How Private Equity Came to Dominate Franchising

Chapter 1 Understanding Franchising's Enduring Appeal

Franchising's Innovative Approach to New Business Creation

Why Do Entrepreneurs Like Franchising?

Why Does Private Equity Like Franchising?

Chapter 2 The Private Capital Landscape- Part One: The Big Money Players

Private Equity Firms Aren't a Homogeneous Group

The Diverse Range of Private Equity Players

Private Equity

Institutional Investors Making Direct Investments

Family Offices

Wealthy Individuals

Independent Sponsors

Strategic Buyers

Hybrid Investors

Chapter 3 The Private Capital Landscape- Part Two: The Big Money Strategies

Three Primary Private Equity Franchise Investment Types: Growth, Value, and Turnaround

Growth Investors in Franchising: Incubate and Accelerate

Value-Based Franchise Investing: Extend and Expand

Turnaround Investors in Franchising: Reengage and Reinvent

Disclosure Risk

Chapter 4 The Parallel Tracks of Private Equity and Franchising: Where It All Began

Franchising Showed Tremendous Early Promise

Raising Capital: Private Equity's Early Days

Parallel Expansion Paths

Franchising: Not Just a US Phenomenon

Chapter 5 Family Pizza Night Looks Like a Pile of Cash: Private Equity Discovers Franchising

Early and Dominant Private Equity Entrants into Franchising

Private Equity's Platform Strategy Is a Strong Fit for Franchising

The 2007-2009 Financial Crisis and Recovery.

The Rise of the Private Equity Profit Ladder: The Secondary Trading Market

Chapter 6 Private Equity and Multi-unit Operators: "Small" Business Consolidates

The Big Shift in Small Business

Power Dynamics in the Franchisor and Multi-unit Franchisee Relationship

What Signal Does Private Equity Investing Activity at the Outlet Level Send?

International Private Equity-Backed Multi-unit Operators

It's Getting Warm in Here!

Chapter 7 A Frog, More Big Money, and the Final Missing Piece

Distraction and Perception

Big Money in Plain Sight

The Franchise Private Equity Investor Pool Continues to Grow

If You Don't Make New Friends, at Least Get Aligned

Part Two: The Private Equity Playbook in Franchising

Chapter 8 Private Equity's Playbook for Growing Franchise Businesses

The Due Diligence Playbook

The Private Equity Operations and Growth Playbook

1 The Private Equity Playbook Implements Franchise Growth Accelerators

2 The Private Equity Playbook Also Applies Other Proven Methods

3 The Private Equity Playbook Is Hyper-focused on Generating Results

Building a Value Creation Plan

Chapter 9 Private Equity's Franchise Platform Playbook

The Platform Strategy Has Proven High Returns

Operational Advantages of Platforms

Steps to Build a Platform

Chapter 10 Private Equity's Emerging Brand Playbook

Playbook Practicalities: Run Your Best Plays First

Typical Emerging Brand Challenges That Are Not Off-putting to Private Equity

Common Emerging Brand Challenges That Don't Interest Private Equity

Chapter 11 Private Equity Compensation: 2 and 20

Incentives and Private Equity Decision-Making

No Matter What Happens, Private Equity Is Set Up to Win

Chapter 12 When Everything Clicks: Positive Impacts on Franchising from Private Equity's Playbook.

Private Equity's Top Contributions to Franchising

Further, Faster: Incubating, Elevating, and Accelerating Franchises

Stronger, Better: Infrastructure, Support, Scale, and Longevity

Better Infrastructure

Improved Financial Controls, Professionalism, and Franchisee Support

Improved Stability

Investments in the Brand's Future

Growth Focus: The Bright Side

Game On!: Private Equity Blocks Weak Entrants and Forces Aging Concepts to Up Their Game

What This Means for Preparing for Launch: Most Emerging Brands Never Emerge

Unlocking New Wealth Opportunities: Creating a Robust Trading Market for Franchise Businesses

Part Three: The Private Equity Profit Ladder in Franchising

Chapter 13 Accelerating Organic Growth at Each Step Up the Private Equity Profit Ladder

Ladder Structure: The Secondary Buyout Market

Trading Up, Down, and Across the Ladder

The Lower Rungs

The Middle Rungs

The Top Rungs

Planning Your Wealth Creation Strategy

Ladder Math from Private Equity's Perspective

Ladder Math from the Seller's Perspective

Chapter 14 Building Enterprise Value Through the Power of Platforming and Multiple Arbitrage

A Simple but Powerful Value Creation Model

Hard Work and a Predictable Playbook, Not Alchemy

Frogs and Old Warhorses

The Secondary Buyout Market Moving Forward

Part Four: Down the Ladder: "Smart Money" Bloopers in Franchise Investing

Chapter 15 How to Destroy Franchise Value

Five Steps Down the Profit Ladder

Chapter 16 Overleverage: The Burden That Keeps on Taking

Franchising's Bankruptcy Track Record

Key Elements Needed for Successful Turnarounds

Continuously Building Insights and Market Expertise

The (Positive) Evolution of Private Equity's Franchise Debt Strategy

Whole Business Securitization

Key Whole Business Securitization Takeaways.

Whole Business Securitization Implications for Franchisees

Whole Business Securitization Implications for Franchisors

What to Do Next? Make Sure You Are Well Informed

Chapter 17 More Private Equity Head-Scratchers and Flameouts in Franchising

Short-Timers' Syndrome: Starving the Future to Profit in the Present

Not Protecting Unit-Level Profitability

Growth Focus: The Dark Side

Is the Business Primarily Focused on Selling Franchises?

Field-Stripping Enterprise Value: Sold-Not-Open Arbitrage

Built to Flip

Bastardization of Ebitda (Earnings Before Interest, Tax, Depreciation, and Amortization)

Destroying Franchisee Trust

Part Five: Moving Forward with Private Equity

Chapter 18 Engaging with Private Equity

Founders and Franchisees Should Start with "Why"

"What" Matters Most to You?

"Who" Is Important to You?

Networking with Other Founders and Franchisees Who Have Worked with Private Equity

How Important Is It to You That Your Private Equity Partner Has Franchising Experience?

"Wait": Not Ready for a Private Equity Partner?

Returning to Your Draft Value Creation Playbook

Chapter 19 What to Expect When You're Expecting . . . to Be Acquired by Private Equity (or Already Have Been)

For Franchisees: What to Expect If Private Equity Buys Your Franchisor

Now Is the Time to Establish an Independent Franchisee-Owner Association

Maintain a Sale-Ready Stance

For Franchise Founders (and Management Teams): What to Expect Once Acquired by Private Equity

Chapter 20 The Future of Franchising and Private Equity

Evolving Market Forces

Franchise Generation 4.0 (a.k.a. the Post-pandemic Years)

Near-Term Considerations

Franchising Has Changed in Four Critical Ways Thanks to Private Equity

While Powerful, Private Capital Must Still Reckon with Fundamental Franchising Truths.

The Culture Question

Chief Alignment Officers, a.k.a. Independent Franchisee-Owner Associations

Ways to Connect

Appendix

Resources for Franchise Disclosure Documents

Recommended Reading

Educational Resources

Online Resources

Acknowledgments

Notes

Index

Back Cover.

Notes:

Description based on publisher supplied metadata and other sources.

Part of the metadata in this record was created by AI, based on the text of the resource.

Description based on print version record.

Other Format:

Print version: Miller, Alicia Big Money in Franchising

ISBN:

9781773272382

1773272381

OCLC:

1417758599