Industry Niche Description
Franchisors that operate with a high percentage of franchised locations and provide meaningful operational services and systems to their franchisees.
Franchisors provide economies of scale, brand awareness and other critical services that enable franchisee owners to focus on the growth and profitability of their businesses within local markets.
Attractive target companies within this niche may have the following attributes:
- Majority of revenue generated via recurring franchise royalties, licensing fees and/or supplier rebates.
- Opportunity to significantly expand franchised location count, either by expanding to new geographic regions or penetrating existing footprints.
- Provide meaningful services and infrastructure to franchisee base.
- Attractive franchisee-level ROI and minimal unit churn.