CapitalSpring

Once early success starts to take shape in building a restaurant company, founders often face a new question: should I take on an investor and what should I expect?That’s the focus of an&nbsp;<a href="https://www.franchisetimes.com/franchise_resources/webinars/top-400-webinar-series/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=capitalspring-franchise-times-webinar-emerging-brand-growth-2730527" target="_blank" rel="nofollow">upcoming Franchise Times webinar</a>, “Accelerate Your Emerging Brand With Private Equity or Alternative Investment,” presented in partnership with&nbsp;<a href="https://www.capitalspring.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=capitalspring-franchise-times-webinar-emerging-brand-growth-2730527" target="_blank" rel="nofollow">CapitalSpring</a>. The session brings together private equity experts and restaurant founders who’ve already gone through the process of bringing in a private equity investor.The webinar is part of Franchise Times' Top 400 Exclusive Webinar Series which is designed to provide an inside look at the sales growth, marketing and development tactics of the largest franchise brands in the United States. It will take place on Thursday, October 23 at 10 a.m. CDT.&nbsp;<a href="https://1851franchise.com/capitalspring/info">CapitalSpring’s</a> Head of Investment Group&nbsp;<a href="https://www.linkedin.com/in/erik-herrmann-205aa624/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=capitalspring-franchise-times-webinar-emerging-brand-growth-2730527" target="_blank" rel="nofollow">Erik Herrmann</a> and Head of Strategic Operations&nbsp;<a href="https://www.linkedin.com/in/jim-balis-5879a34/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=capitalspring-franchise-times-webinar-emerging-brand-growth-2730527" target="_blank" rel="nofollow">Jim Balis</a> will be joined by Prime Pizza CEO&nbsp;<a href="https://www.linkedin.com/in/zak-fishman-b04bab101/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=capitalspring-franchise-times-webinar-emerging-brand-growth-2730527" target="_blank" rel="nofollow">Zak Fishman</a>, Hat Creek Burger Company President&nbsp;<a href="https://www.linkedin.com/in/drew-gressett-96891621a/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=capitalspring-franchise-times-webinar-emerging-brand-growth-2730527" target="_blank" rel="nofollow">Drew Gressett</a> and The Works Café Founder/CEO&nbsp;<a href="https://www.linkedin.com/in/richard-f-french/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=capitalspring-franchise-times-webinar-emerging-brand-growth-2730527" target="_blank" rel="nofollow">Richard French</a>.<h3>Growing the Right Way</h3>These Founders will share insights on what makes an investor relationship successful and why the best partnerships go far beyond capital. “Capital has become a commodity and if you're looking to grow your business, seek out a partner who can help you strategically as well,” Herrmann said. “It's as much about what other capabilities can be brought to the table to get the job done.”CapitalSpring’s approach is about partnership — bringing not only capital but also strategic expertise and operational support to help brands grow faster and stronger. The firm’s highly supportive approach focuses on leveraging the DNA of each brand and leveraging those elements that make the business successful.“Every brand we work with has its own personality and priorities,” Balis said. “Some founders want us in the weeds on operations; others are looking for help with strategy or finance. We try to provide the support they need without stepping in and running their business for them. That’s one of the core differences with CapitalSpring. We form a partnership and collaborate with the management team to develop strategies that drive results.”<h3>Lessons From Founders Who’ve Been There</h3>The panel will feature several restaurant founders who’ve experienced firsthand what it’s like to partner with CapitalSpring — and how the right investment relationship can help a brand move from momentum to scale. "It’s easy to find money to grow your business with, but finding a true partner who understands your needs and is aligned with your priorities is the key," Fishman said.&nbsp;Gressett echoes that sentiment, noting that private equity has the potential to transform how founders think about growth. "The key insight I’d share with other emerging brands is to treat PE as a co-pilot, not a cash machine,” he&nbsp; said. “CapitalSpring is a firm who aligned with my vision culturally and brought operational experience as well. Their network and playbook has helped fast-track growth in ways solo funding never could.”For French, the difference comes down to CapitalSpring's over two decades of experience investing in the space. "CapitalSpring takes the time and understands the importance of knowing what your 'special sauce’ is and will never try to change that - it’s the opposite, they focus on what has made you successful and pours gas on the fire,” he said.<h3>Join the Conversation</h3>Whether your concept is just gaining traction or already preparing for expansion, this webinar will offer a clear look at how to find the right investment partner.&nbsp;<a href="https://www.franchisetimes.com/franchise_resources/webinars/top-400-webinar-series/top-400-webinar-series-registration/html_b7a45d40-746e-11ef-9014-475db058768f.html?utm_source=1851franchise.com&utm_medium=article&utm_campaign=capitalspring-franchise-times-webinar-emerging-brand-growth-2730527" target="_blank" rel="nofollow">Register today</a> to save your spot.For more information about CapitalSpring, please visit&nbsp;<a href="http://www.capitalspring.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=capitalspring-franchise-times-webinar-emerging-brand-growth-2730527" target="_blank" rel="nofollow">www.capitalspring.com</a>.&nbsp;

CapitalSpring Webinar: How Emerging Brands Can Accelerate Growth

1851 Franchise

A panel of investors and restaurant founders will share what it really takes to scale - and how the right investment partner can help growing brands reach the next level.

CapitalSpring and Franchise Times Team Up for Webinar on How Emerging Brands Can Accelerate Growth

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For emerging franchisors, growth is almost never a straight line. After founders bootstrap their early expansion and prove the concept in a handful of markets, they face a critical question: When is the right time to bring in strategic capital?According to&nbsp;<a href="https://www.linkedin.com/in/erik-herrmann-205aa624">Erik Herrmann</a>, partner and head of the Investment Group at&nbsp;<a href="https://www.capitalspring.com/">CapitalSpring</a>, the answer isn’t tied to a single milestone but rather to a convergence of signals indicating a brand is ready to scale beyond its original footprint.<h2>From Local Success to Regional Ambition</h2>One of the clearest signs that a franchise brand is ready for institutional capital, or for a partner like&nbsp;<a href="https://1851franchise.com/capitalspring/info">CapitalSpring</a>, is the transition from local success to regional ambition.“It’s about having demonstrated a solid proof of concept, building out the unit economics and the positioning of the concept,” Herrmann said. “Some proof of portability beyond one specific local market is a key indicator. We find that you tend to hit this inflection point after growing organically and locally. You want to go and take it to the next level and go regional, and that tends to be a good time to bring in an investor.”At this stage, brands are no longer proving whether the concept works. They are determining how fast and how far they can grow. Strategic capital becomes less about survival and more about acceleration.<h2>Why Unit Economics Tell the Real Story</h2>For investors, the most compelling franchise brands are not defined solely by consumer demand but by&nbsp;<a href="https://1851franchise.com/capitalspring/how-capitalspring-is-fueling-prime-pizza-next-era-of-expansion-2731270#featured">the strength of their business model.</a>“The first thing to remember is that if you are a franchisor, the product you are selling is not the one the end customer is buying,” Herrmann said. “You aren’t selling hamburgers, you are selling a hamburger franchise. You are selling a business model. From an investor standpoint, how good is that business model relative to what else is out there? There are thousands of models, so you need to stand out and have a real clear differentiation and point of view in the category. The franchisee is investing capital in the brand. What kind of payback can they expect to achieve on that? That is what is really going to drive the decision.”Equally important is affordability. Lower startup costs can dramatically expand the pool of potential franchisees.“You may have two concepts that generate the same returns, but one has much lower startup costs,” he said. “There are going to be more people who can invest in that model. How broad is that potential base of franchisees is certainly a key factor for investors?”<h2>Growth Capital vs. Traditional Financing</h2>Another key consideration for franchisors is understanding the difference between growth capital and traditional financing, and knowing when to shift from one to the other.“The nice thing about franchising is that it is not capital-intensive,” Herrmann said. “It really depends on where you are in your life cycle. An early-stage franchisor might be losing money because they are investing in infrastructure to start, for example. The more corporate stores the brand operates, the more capital-intensive it is. But with franchising, you can also grow to thousands without putting a dollar in.”So why bring in capital at all? Often, the motivation goes beyond funding. “The reason you see growing franchisors using capital is that they either want to take money out of the deal, or they are looking for a strategic partner to help with growth,” he said.<h2>The Value of the Right Partner</h2>Ultimately, the decision to bring in strategic capital is less about timing the market and&nbsp;<a href="https://1851franchise.com/capitalspring/franchise-investment-partner-capitalspring-2731017">more about finding the right partner</a>.“The key is working with a partner that brings real turn-key value and has done it before,” Herrmann said. “You are selling a business model, so how do we refine it to really stand out? Do we have the right product scope or does it need to be tweaked? The right design and branding? Is there a way we can cost engineer the build-out to make the ROI more compelling to the franchisee?”Beyond operational improvements, experienced investors can unlock growth opportunities that might otherwise remain out of reach. They open doors with multi-unit developers, bringing established relationships with large franchisees and the know-how to reach them. “It’s not just about selling franchises,” Herrmann said. “It’s also about making sure you have the resources to ensure they are supported and have the infrastructure to be successful.”When it comes to institutional capital, Herrmann is clear that the decision should be tailored to each brand’s goals.&nbsp;“There really isn’t a one-size-fits-all,” he said. “It’s about what your objectives are as a franchisor and the areas that you need help with. It is a very personal decision.”To find out more information, please visit&nbsp;<a href="https://1851franchise.com/capitalspring">https://1851franchise.com/capitalspring</a>.

The right time to seek strategic capital is when the fundamentals are proven, the ambition to scale is clear and the need for a value-added partner outweighs the cost of giving up equity.

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CapitalSpring and Franchise Times Team Up for Webinar on How Emerging Brands Can Accelerate Growth

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