FranShares Secures $4.1M Seed to Bring Franchise Investing to the Masses
30 Julio 2024 - 10:01AM
FranShares, the platform for franchise investing, today announced
$4.1M in seed funding led by Chicago Ventures. The oversubscribed
round brings FranShares’ total capital raised to $5.76M.
FranShares is riding high as investors buffeted by economic
uncertainty and fears of recession seek investment alternatives
backed by real assets. FranShares makes investing in franchises as
easy as investing in stocks and mutual funds. With FranShares,
individual and institutional investors alike can access streams of
passive income with low minimums and annual fees.
Savvy investors have long favored franchises for their potential
to outpace inflation and hedge against recession over the long
term. During downturns, consumers continue to spend on essentials
like food, waste disposal, haircuts and other goods and services
offered by franchises. Franchises make $787.7B annual revenue in
the United States and represent 3% of GDP. With around 775,000
establishments operating nationwide, franchisees are responsible
for 8.2 million jobs across 4,300+ brands and over 100
industries.
Until recently, one of the only ways to invest in a franchise
was to purchase one yourself. But startup costs beginning at $100K
and often running into the millions — not to mention the time and
expertise involved — put ownership out of reach for most
people.
FranShares wants to bring franchise investment to everyone. Led
by franchise brokerage veteran Kenny Rose, FranShares is a one-stop
solution for franchise operators and investors. Operators can
quickly fund expansions through FranShares’s community of nearly
50,000 investors, who gain fractional ownership in franchise
locations and receive excess profits as distributions.
Unlike anything-goes alternative assets like cryptocurrency and
NFTs, franchisors must disclose financials, executive backgrounds
and even litigation, and they are regulated by the FTC for consumer
protection. FranShares’s offerings are subject to SEC
regulations.
The combination of transparency, high earning potential, low
barriers to entry and a resilient business model has proven to be a
winning proposition. FranShares has more than 43,000 people signed
up for upcoming offerings. Almost half of the investors on the
waitlist are millennials (30.6%) or Gen Z (17.2%). With a median
age of 38.5, more than 72% say they are “looking for investments
that generate income and offer regular payouts.”
FranShares will use its new capital to expand its business and
launch a secondary marketplace later this year, with the goal of
improving fund investors’ access to liquidity.
“There’s a reason franchise investing is so popular with
one-percenters and celebrities like Shaquille O’Neil and Patrick
Mahomes. Few other asset classes, if any, have the potential to
deliver attractive returns and equity appreciation. After the
roller-coaster ride of the past few years, there’s a huge pent-up
demand for investments that can provide real income from real
businesses. Franchises have always been a great way to build
wealth. It’s time to bring these opportunities to a wider
audience,” said FranShares CEO Kenny Rose.
“FranShares is on to something big, and they have the talent and
the gameplan to execute,” said Stuart Larkins, Founding Partner,
Chicago Ventures. “They’re unlocking an entire asset class for
investors hungry for alternatives to traditional bonds and
equities.”
For more information about FranShares and to join the waitlist,
please visit https://www.franshares.com
About FranSharesFranShares is democratizing
access to franchise investing and funding. Founded by best-selling
franchise expert Kenny Rose and backed by leading investors
including Chicago Ventures, FranShares offers its community of
43,000+ investors a unique opportunity for passive income and
equity appreciation. It gives franchisors and franchisees a fast
and easy way to raise funds for expansion, and provides individual
investors access to an alternative asset class prized by
institutions and high-net-worth individuals.
Media ContactChris
Ulbrichfranshares@firebrand.marketing415 848 9175