Haynes and Boone's Newsroom
The Shifting Sales Paradigm: Private Equity, Multi-Unit Developers, Joint Ventures
03/25/2011
Joyce G. Mazero
With a roadmap in mind, negotiating a deal does not have to upend either party's values or business plan, and can be the start of a successful relationship.
In recent years, many franchises have shifted their growth strategy away from small, single- and multi-unit franchisees to larger, more sophisticated operators, including multi-unit developers, private-equity firms and joint ventures. Such operators are typically better capitalized and willing to commit to multi-unit expansion, but also more apt to negotiate agreements that are reflective of their particular business strategies. To effectively tap into these operators, a franchise must offer an agreement which recognizes the unique needs of a sophisticated franchise operator.
Excerpted from Franchising World, International Franchise Association, March 2011. To read the full article, click here.