February 28, 2007 - Alexandria, VA—Franchise Capital Partners (FCP) recently announced a $50 million partnership with Anacapa Capital Management to invest in emerging franchise chains. The FCP, which was formed by franchise veterans Dan Rowe, Chris Bright and Tommy Reiser, plans to make ten acquisitions in the fast casual and full service restaurant industry over the next two years and invest between $1 and $10 million in each transaction.
“Over the next 24 months we will buy controlling stakes in ten emerging brands that we think we can grow systemwide sales by at least 1,000% in a few years,” says FCP partner Dan Rowe. “Target brands must have meaningful differentiation, strong customer appeal, solid unit economics, management that wants the right recourses to help grow to the next level and the ability to grow.”
FCP’s affinity for emerging brands stems from their professional background. Mr. Rowe, Mr. Bright and Mr. Reiser are all executives in the Alexandria, VA based franchise development company Fransmart and have helped concepts such as QDOBA, Five Guys Burgers & Fries and zpizza grow from local brands into national, sometimes international powerhouses.
Mr. Rowe adds, "We got involved with QDOBA when it was only a single unit in Denver and back then $1million would have bought at least half the company. 4 years after we started working with QDOBA it sold for $45m to Jack in the Box and that $1 million would have grown over 2000%."
Once FCP buys into the brands, they plan to leverage key Fransmart resources such as AutoPilot and their franchise sales and development services.
“Somewhere between friends and family and real private equity is a huge hole where lots of great concepts with great fundamentals cannot grow because they don’t have the right resources,” continues Rowe. “We are targeting these concepts at the very important "hockey stick" inflection point and expect huge leverage not only because we are providing the capital but also because we are providing the top notch expertise they need to grow."
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View Company Website: http://www.fransmart.com
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