Liquidity Options for Founders of Franchisors

As a franchisor, You’ve grown your business to scale. Your business is profitable, you believe in its continued growth prospects, and you are looking to take some money off the table. You’ve read the headlines of other franchisors selling to private equity – what should you do?

Traditionally, the liquidity options to consider are limited to the following: debt recapitalization, outright sale, or private equity transaction. There is another option to consider: royalty transaction.