Investors flock to franchises for passive income opportunities with equity growth opportunities
CHICAGO, July 30, 2024 (GLOBE NEWSWIRE) — 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 FranShares
FranShares 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 Contact
Chris Ulbrich
franshares@firebrand.marketing
415 848 9175
