Private equity and franchising have become a lot closer in recent years, though many franchisors still don't know much about PE as a potential vehicle for growth. In a recent column for Forbes, SMB Franchise Advisors president and CEO Steve Beagelman addressed private equity's entrance into the franchise space.
The capital infusion private equity represents, Beagelman explained, has the potential to yield impressive returns for many franchisors—so long as brands are willing to open themselves up to outside influence, of course.
"Franchisors must refine the type of [private equity] firm they’re targeting," Beagelman writes. "Are you interested in pursuing an investment from a small boutique firm or a huge firm with global reach? If neither, where do you fit in between? When exploring potential private equity partners, take the specifics of your brand into account. ... You will want to find a partner that fits your model and can help you reach your growth goals in a manner that appeals to you, as well as your preferred level of involvement."
Read the full Forbes article here.