Franchisors Highlight Capital Needs at FT Conference
Dunkin Brands has significant capital needs in 2017: $2.5 million for Baskin Robbins remodels; $6 million for Baskin Robbins new builds; $99 million for Dunkin’ Donuts remodels; and $263 million for Dunkin’ Donuts new builds.
As told by Dunkin’s Jason Maceda, vice president of finance, it was the most obvious reason explaining lender interest at the Franchise Times Finance & Growth Conference that opened yesterday in Las Vegas. The annual conference brings together franchisors, operators, lenders and private equity firms intent on matching capital with operational needs. A few other highlights:
-Dunkin’ Donuts has one store for every 8,700 people in its core region in Massachusetts and the Northeast, but in the western United States, that number drops to one store for every 295,000 people—in other words, there is a lot of white space out West for Dunkin’ expansion.
-Mooyah’s CEO Michael Morales rattled off the burger chain’s motto: “We’re as fresh as we are fun, as intelligent as we are imaginative, and as picky as we are playful,” he said. But “we can’t be fun all the time. We need to be serious on a couple of things,” and those include food and finance.
He outlined strict guidelines for prospective franchisees: A minimum net worth of $600,000 and liquid cash of $250,000.
-Walk-On’s founder and CEO Brandon Landry reported eye-popping average unit volumes at the bar and grill chain with a Louisiana twist: $5.3 million as of last year which he says will rise to $6 million “across the board” in 2017.
The Franchise Times Finance & Growth Conference continues through noon on March 15 at the Encore hotel in Las Vegas.