Over the last decade or so, private equity firms and other strategic and institutional buyers have turned their focus not only to franchisors, but increasingly to multi-unit—and often multi-brand—franchisees. While this trend has been firmly established in the U.S., it’s now making greater inroads in the Canadian market. But there remain impediments to growth of this trend in Canada, including size and scale limitations. What can be done to motivate private equity and other investors to invest in Canadian multi-unit franchisees?
Key Learning Objectives
1. Understand the growing trend of private equity investment in multi-unit and multi-brand franchisees, particularly in the Canadian context.
2. Learn what makes multi-unit operators attractive to investors and how this changes the traditional franchisor–franchisee dynamic.
3. Explore how brands are supporting the multi-unit model and the implications for system growth, performance, and operational alignment.