The Opportunity

The outlook for the franchise industry is that it will continue to grow in the coming years. The opportunity has been born of the need for specialized and knowledgeable funding and development of developmental stage franchise product and/or service concepts. We believe there is an opportunity in the franchise marketplace for a franchise development firm, such as FranCap, to partner with either existing or prospective franchisors to build their franchise operations rather than charge large upfront or ongoing cash fees for franchise development services such as most other franchise consulting firms that currently operate in the marketplace today.

In addition, we believe that meaningful investment support for aspiring franchisors has been almost entirely neglected until now. It is this void that FranCap intends to fill by sourcing of capital investments to qualified start-up and/or established early stage businesses, whose principals in concert with FranCap's Management Team, believe a successful franchise product or service can be speedily developed, packaged, registered, marketed and profitably managed.

Value Proposition

The value proposition that FranCap offers to existing small established businesses (that have the potential to become franchise operations) and to existing early stage franchisors (that have the potential to become large successful franchisors) is to provide them with the franchise development expertise and capital sources that will enable them to potentially become large national brands.

The Cost

FranCap's compensation for providing its franchise development services is generally performance based. In other words, FranCap may derive its revenue primarily from a revenue sharing arrangement with the franchisor in exchange for providing the franchisor with FranCap's franchise development services. In addition, FranCap may also take a small equity position in the franchisor.

Franchise Targets

FranCap's search for suitable franchise development opportunities is generally directed towards small and medium-sized enterprises which have the desire to develop and license their franchise rights. Typical franchise opportunity targets will: (i) be development stage entities with established "proof of concept"; (ii) be experiencing financial or operating difficulties; or (iii) be in need of expertise and funds to develop a franchise system.

Industry Segments

FranCap will primarily seek target opportunities in the following industry segments:

  • Automotive
  • Business Services
  • Commercial and Residential Services
  • Lodging
  • Personal Services
  • Quick Service Restaurants
  • Table/Full Service Restaurants
  • Real Estate
  • Retail Food
  • Retail Products and Services