Fund Launch Articles/How To Buy Franchises Using A Fund

How To Buy Franchises Using A Fund

Tuesday, January 10, 2023

*As always, please make sure to consult with your financial advisor before making any investment decisions.


THE MODEL

You've probably been somewhere super fun or tastey, and daydreamed about owning a bunch of those franchises yourself.

Well, there are tons of funds that do exactly that!

Here's what it kind of looks look:

Most companies will charge you $100,000 to $1,000,000 to buy a franchise from them. And most people will simply pay out of pocket or pool up $ with friends/family...

However, a friend of mine raised a fund to finance the purchase of these franchises.

And instead of buying 1 or 2 franchises, he bought 70 to 100 franchises with investors' money...

All while negotiating lower fees with the corporate owner!

He'll then use his management team to make those franchises perform at their peak,

And in a couple of years, he sells that portfolio to someone else for millions of dollars...

paying back his investors and keeping millions for himself.



REAL FRANCHISE FUND EXAMPLES

There are plenty of successful Franchise Funds, for example, the Ninety One Global Franchise Fund.

They invest in established franchise systems that operate in a variety of sectors, such as retail, healthcare, and service-based businesses.

The Fund's objective is to provide long-term capital appreciation to its investors.

It focuses on investing in well-established, profitable, and growing franchise systems that have a proven track record of success, and has a diversified portfolio of franchises across different industries and geographies...

It seeks to achieve this by investing in companies that have a strong and experienced management team, a proven track record of profitability, and a clear growth strategy.

It's considered as an alternative investment strategy and could provide a high return with relatively low risk.




THE INVERSE FOR COORPERATE OWNERS​

An inverse to this model is the McDonald's Franchisee Ownership Program, which allows individuals to purchase a McDonald's franchise by obtaining funding from a group of investors (aka their own fund that is outward facing) rather than having to come up with the capital on their own.

So if you run your own company that franchises, perhaps setting up this structure is beneficial!

Thanks,
Bridger Pennington  & Mason Vranes

DSC09130 (1) jpeg

Bridger Pennington

CEO Of Fund Launch

IT'S NOT TOO LATE:

JOIN 2,500 FUND MANAGERS AT FUND LAUNCH LIVE!

Proximity is Power, and nothing comes close to the magnitude of Fund Launch Live

Orange and Black Modern Music Festival Ticket png
FundLaunchLogo-05 (2).png

Disclaimers


All Information Shared Are The Sole Thoughts and Opinions Of The Author. Do Not Take Any Information As Legal Or Financial Advice. You Should Seek A Certified Accountant And A Professional Legal Team Before Taking Any Further Action.

*Results may vary depending on a number of factors, including but not limited to market conditions, investor demand, and investment strategy. While our courses are designed to provide you with the knowledge and tools necessary to launch a fund, we cannot guarantee any specific results or outcomes. Your success will depend on your own efforts, diligence, and ability to execute on the strategies and techniques that you decide to pursue. We make no representation or warranty that you will achieve any particular level of success or earnings, and you accept the risk that the results may differ from those described in our materials.

**Any reported Client AUM figure is historical and is based on figures clients have reported to us. It includes estimated amounts based on available information. The figure has not been independently verified and should not be considered audited or verified by a third party. We reserve the right to modify, amend, or remove the AUM statement at any time without prior notice. We make no warranties or representations, express or implied, regarding the accuracy, completeness, or reliability of the AUM figure or any other information provided on this website.

***We are not selling or soliciting a security in any way, shape, or form. This content is for educational purposes only and is not financial or legal advice.

This site is not a part of the Facebook website or Facebook Inc. Additionally, This site is NOT endorsed by Facebook in any way. FACEBOOK is a trademark of FACEBOOK, Inc.