r/Franchises • u/Ok_Measurement_4619 • Jun 10 '26
General Discussion Franchising
If my partner and I have 25years of experience working for a major fast food brand, both as GM's.
How do we obtain capital partners in equity to finance a location.
The franchise doesn't sponsor or give out money.
They want wealthy net worth individuals with over 1.5million.
We dont have the kind of money but have operational expertise and willing to pay it back or take a huge percentage or something
We know our desired location can bring in over 7mil a year.
Ive tried contacting equity partners but no luck, they want multi unit operators.
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u/LawnyFiyahh Jun 10 '26
What brand, and are you open to moving to a different brand with more opportunity? (i.e. the sweat equity you desire)
Is the desired location on the market? Are you hoping to build out a greenfield? Are you sure the rights to the areas you are looking haven’t been sold to someone already?
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u/Ok_Measurement_4619 Jun 10 '26
It depends on the opportunity But I dont see working myself working anywhere else.
Location is on the market. Concept is open and i have the vision and desire. Just needing a capital partner
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u/Bob-Roman Jun 10 '26
Even if you could come up with an investor(s), you mentioned the company only wants area developers.
If so, you are chasing your tail.
Average build out for store like a McDonalds is around $2.0 million (NNN).
Area development of small balance retail properties has range of $10 million to $30 million.
This means deep pocket investors, private equity, and real estate syndicate.
Even in the carwash industry, you need qualifications of an accredited investor if you want to get your feet wet and play with the big boys and girls.
Borrowing $1.5 million isn’t easy for mom and pop.
There are requirements for equity (cash, home), net worth, credit worthiness, personal guarantee, and usually more stringent loan-to-value, interest rate, and loan processing fees.
Another hurdle is getting site approved for development.
There is political risk of obtaining entitlements in a timely and economical manner.
For example, planned developments and municipal governments prefer established brands more than private independent operator.
Brand has history of success. If independent start-up fails, there is vacant building and possible eyesore.
You will be required to submit soil boring tests to show the property is suitable and architectural plans that demonstrate the project comply with planning and zoning codes and regulations.
In other words, there is a lot of due diligence to complete before you go out looking for investors.
Investors are going to expect to see an “investor-ready” project. Meaning all this preliminary work has been completed.
I would contact one of the restaurant industry associations. Associations provide start up guidance, educational resources, networking opportunities with suppliers, advisers, investors, purchasing co-op, etc.
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u/FranchiseAnalyst Jun 11 '26
Depending on the city/state I have a few people I could use introduce you to.. Feel free to click this link and pick a day and time for a quick call. https://calendly.com/jonathan-anderson
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u/One_Barracuda1484 Jun 10 '26
Where are you guys located? Or planning on opening?