Enter the Venture Capitalist. Deal.com posts this interesting article on the trend of venture capital groups moving away from technology and into franchising for investment purposes. From Burger King to Carvel to CiCi's Pizza, private equity firms are choosing management-led (and non-management-led) buyouts of franchise companies as solid investments in these tenuous financial times. According to some of the experts, existing franchise companies offer a combination of low capital expenditures and employee overhead and a stable, predictable revenue stream. As franchising and franchisors grow during an economic slump, their appeal to investors increases as well.
Posted by franchiselawblog at November 26, 2003 12:32 PM