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Impact of Private Equity on Franchising

By ALM Staff | Law Journal Newsletters |
December 21, 2012

As 2013 begins, franchising is being transformed by major investments in franchise systems by private equity funds. FBLA asked leading franchise attorneys how they see private equity affecting the industry, and their responses reflect widespread optimism that these investors are bringing much more than (the widely appreciated) funding that can fuel franchise expansion. With their focus on investor returns, private equity investors can help franchises to define their strategies more carefully and to be relentless in seeking to improve profitability. However, these benefits come at the price of a loss of independence that can be especially hard for founders of franchise systems who have accepted private equity ownership.

Most Influential Force in Franchising Today

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