How Private Equity and Franchising Forge a Win-Win Partnership
Thanks to successful business models, training, and support, the franchising industry is growing and changing in exciting ways. One of the most promising developments in recent years has been the ever-increasing acquisition rate of select brands by private equity (PE) groups. In a symbiotic relationship, private equity groups provide access to capital designed to accelerate growth and brand awareness.
Why do private equity groups like franchises? It’s simple – franchises are a smart investment. They have stable business structures and agreements that bring in money regularly. This makes franchises a safe choice for investors, reducing the risk of putting money into a new franchise brand.
Franchise FastLane knows how valuable PE groups can be for a brand’s growth. They are supported by Southfield Capital, a private equity firm that helps growing companies. In less than seven years Franchise FastLane has assisted in PE events of ten brands. In each case, it’s a deal that benefits both sides, making it a win-win situation in the fast world of franchising.
You can learn more about brands that have been boosted by private equity groups, both now and in the past, by reading on.
Franchise FastLane’s Success with Private Equity
Below you will see several brands, both past and present, that have secured investment and backing from private equity groups.
- D-1 Training, acquired by Princeton Equity Group – among the most experienced franchisor and multi-unit investors in the U.S. in 2021
- Monster Tree Service, acquired by Authority Brands in 2020
- Premier Martial Arts, acquired by Unleashed Brands in 2022
- Mosquito Shield, acquired by Five Star Franchising in 2022
- Fastest Labs, acquired by LP First Capital and Genesis Park in 2023
- Conserva Irrigation, Koala Insulation, and Wallaby Windows were acquired by Empower Brands – a firm that was created through the merger of Lynx Franchising and Outdoor Living Brands
- Redbox+, acquired by BELFOR Franchise Group in 2021 – the world’s largest residential and commercial services franchise group
- Color World Painting, acquired by Authority Brands in 2022
Brands in Franchise FastLane’s Current Portfolio Backed by PE
Below is a list of brands currently featured in Franchise FastLane’s portfolio of select brands. These include:
- Conserva Irrigation, acquired by Empower Brands in 2021
- Koala Insulation, acquired by Empower Brands in 2023
- Wallaby Windows, acquired by Empower Brands in 2023
- Zoom Drain, which received strategic investment from MPK Equity Partners in 2021
- Five Star Bath Solutions and Mosquito Shield, acquired by Five Star Franchising in 2022
- Strickland Brothers, acquired by Princeton Equity Group in 2021
Franchise FastLane is proud of the brands, past and present, that private equity groups believe in. The capital these PE groups provide can be extremely helpful in driving incremental growth and expansion at the brand level. And, if these brands continue their upward trajectory, a healthy ROI flows back to the benefactors. FastLane prides itself on its discriminating brand selection process, and if the abundant amount of brand-level interest generated from various PE groups is any indication, we’re clearly on the right track.
About Franchise FastLane
Franchise FastLane is an accelerated turn-key franchise sales organization that works with select franchisors to perfect their discovery process, bring qualified franchisee leads and drive responsible, accelerated growth.
For more information, www.franchisefastlane.com.