Princeton Equity Group’s Managing Partner Shares His Strategic Approach to Franchise Investments
If there was ever a trailblazer in franchising, it’s Jim Waskovich. As Princeton Equity Group’s managing partner, he has made bold, strategic investments in franchising and holds the distinction of being the only private equity investor to partner with a franchise broker network— IFPG. “I love being a part of the largest network in franchising and am so proud of the business Don Daszkowski and the team are building.”
Waskovich has been hooked on franchising ever since investing in Massage Envy in 2009. After growing the franchisor to over 800 locations and eventually selling to Roark Capital in 2012, he went all-in on franchise investments. “When the kind of outcome we had at Massage Envy is your formative experience in franchising, you take note and want to do it again and again!,” he says. To date, Princeton has invested in more than 35 concepts and is one of the most active backers of franchisors in the country.
Princeton’s investments run the gamut from sexy fitness brands such as D1 Training to industry disruptors like Ellie Mental Health and resilient home services companies, including the Five Star Franchising umbrella. In addition to valuing franchising’s vast opportunities, Waskovich also loves its culture. “This is a people business. If you love people and care about the success of others, this is an amazing industry to be a part of.”
For Waskovich, the decision to invest in a franchise company is based on more than numbers. The people behind the brand also factor in heavily. “I like to be ‘sold’ by a founder. We obviously will do all of our diligence and will only invest in concepts with truly stellar unit economics, but for me, the difference comes down to the founder’s command of the business and vision for the future.”
Q&A: Jim Waskovich, Princeton Equity Group
Waskovich attributes much of his success to strategic leadership. Here, he reflects on the importance of leadership in business.
1. What does leadership mean to you?
My parents ingrained in me at a young age that being a leader is the most important thing you can be. Society needs leaders. Leaders don’t just solve problems. They look for opportunities and are willing to take risks where others are not. Leaders also make other leaders better. I believe leadership can be taught and nurtured. We try to do this at Princeton Equity Group. We give our people at all levels much more autonomy than is typical in our industry. The same is true with our portfolio companies. It is actually easier in the short run to just tell someone what to do. It takes more time and investment to allow someone to fail, be able to catch the mistake, and ultimately, mentor and train that person over time to make good decisions and achieve things on their own. Being a leader means you actually have to work harder than anyone else. We believe if we create cultures that allow our people to grow as leaders, we will do better than our peers over time.
2. What is your mantra or motto?
Business legend Peter Drucker advised, “Focus on opportunities, not problems.” That is something I think a lot about as an investor. We look for concepts that have the opportunity to transform their end markets. We want to help create household brands. This means we have to be in the “think big” business.
3. What qualities do you seek in your team?
For us, intelligence, hard work and a history of leadership and accomplishment are table stakes. But I think about what I call the “Babysitter Test.” Would you allow this person to watch your kids while you were away? If you won’t trust someone with your kids, don’t trust them with your business and brand.
For more information, visit https://princetonequity.com/.
