Private equity firms are an active force in the industry due to the rewarding investment opportunity the franchise business possess. They use their capital as a strategy for growth, or provide it as an option to those looking for a way out. There is no doubt that as a franchise owner, private equity (PE) provides you options. However, if you find yourself considering PE as a strategy, make sure you understand some of the unintended consequences in relation to your purpose and future business vision.
As an operator who is looking to grow, PE can be attractive. They can be your financial partner providing the capital resources necessary for growth, but without careful consideration you can also find yourself in your worst nightmare. Before you make a commitment to a PE partnership, it is critical to consider and understand the rules of engagement. Simply, make sure you know how to form the appropriate partnership in regards to your goals, and how you get out of it.
Read the complete article on the Multi-Unit Franchisee Website website