Looking to take your franchise operation to “the next level”? Looking to turn your business into a franchise operation? Need Capital to make it all happen?
Franchising is one way of raising capital to grow a business. Often, Franchisor’s then rely on debt financing to support additional funding needs. One way to fund franchise development or expansion is to raise capital by issuing equity securities in the Franchisor company.
Unlike debt, equity requires no security, does not attract interest and is not repayable.
By issuing shares in the Franchise company, the Franchisor can fund expansion without the burden of mortgaging assets and taking personal financial risk.
Equity funding is an excellent complement to franchise funding and, like Franchisee funds, equity stakeholders provide financial support but without taking an active role in the business or a decision making role in the franchise system ...