Opportunistic Private Equity Groups Invest in Franchise Brands

Thanks to the success of their proven business models, comprehensive training, and ongoing support, the franchising industry continues to expand in new and exciting ways. One of the most promising developments in recent years has been the ever-increasing acquisition rate of select brands by private equity (PE) groups. In a symbiotic relationship, private equity groups provide access to capital designed to accelerate growth and brand awareness. In turn, PE groups receive a healthy return on investment through their partnership with successful brands. What makes certain franchises an attractive proposition for private equity groups? The answer is simple – much like any other opportunity, franchises are simply a sound investment. Because their business structures and royalty agreements are both stable and recurring, franchises have become quite the predictable asset class. That, in turn, reduces the overall financial risk of investing in a new franchise brand.

At Franchise FastLane, we’re well aware of the value PE groups can have on a brand’s growth potential, as we ourselves are supported by Southfield Capital, a private equity firm that partners with exceptional, growing companies. In less than seven years Franchise FastLane has assisted in PE events of ten brands. In each of these cases, it’s a transactional relationship that defines the win-win mentality of life in the FastLane. Read more to learn about our current and previous brands that have been acquired (and boosted) by the power of private equity groups!

Brands That Are – Or Were – in the FastLane That Went on to Experience a PE Event:

Below you will see several brands, both past and present that have secured investment and backing from private equity groups.

• D-1 Training, acquired by Princeton Equity Group - among the most experienced franchisor and multi-unit investors in the U.S. in 2021
• Monster Tree Service, acquired by Authority Brands in 2020
• Premier Martial Arts, acquired by Unleashed Brands in 2022
• Mosquito Shield, acquired by Five Star Franchising in 2022
• Fastest Labs, acquired by LP First Capital and Genesis Park in 2023
• Conserva Irrigation, Koala Insulation, and Wallaby Windows were acquired by Empower Brands – a firm that was created through the merger of Lynx Franchising and Outdoor Living Brands
• Redbox+, acquired by BELFOR Franchise Group in 2021 – the world’s largest residential and commercial services franchise group
• Color World Painting, acquired by Authority Brands in 2022

Brands in Franchise FastLane’s Current Portfolio Backed by PE:

Below is a list of brands currently featured in Franchise FastLane’s portfolio of select brands. These include:

• Conserva Irrigation, acquired by Empower Brands in 2021
• Koala Insulation, acquired by Empower Brands in 2023
• Wallaby Windows, acquired by Empower Brands in 2023
• Zoom Drain, which received strategic investment from MPK Equity Partners in 2021
• Five Star Bath Solutions and Mosquito Shield, acquired by Five Star Franchising in 2022
• Strickland Brothers, acquired by Princeton Equity Group in 2021

We’re proud of the several Franchise FastLane’s brands, both past and present, that were deemed worthy of private equity investment, acquisition, and ownership. The capital these PE groups provide can be extremely helpful in driving incremental growth and expansion at the brand level. And, if these brands continue their upward trajectory, a healthy ROI flows back to the benefactors. We pride ourselves on how selective we are when brands become part of the FastLane, and if the abundant amount of brand-level interest generated from various PE groups is any indication, we’re clearly on the right track.

Are You Ready to Grow Your Brand?

Franchise FastLane is the #1 franchise sales organization in the country, committed to responsibly driving accelerated growth for emerging franchisors. To learn more about the Franchise FastLane process, visit our page today.