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Timing Is Everything When Seeking Growth Capital


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Lani Dolifka is CEO of Watermill Express, one of three emerging franchises featured in Living Large in each issue of Franchise Times.

“Rather than the ‘when,’ it’s far more important to focus on ‘who’ you are partnering with and how the deal is structured,” says NRD Capital Managing Partner Aziz Hashim, about getting funding for franchise expansion.

He was speaking to Living Large columnist Poornima Apte, who details in an upcoming print edition how and when three emerging franchise brands should seek capital to foster growth, and we include Hashim’s commentary here to augment the print piece.

“An appropriate strategic partner can provide funding but perhaps, more importantly, the know-how and support so that common mistakes are avoided and growth occurs in the most fruitful way,” Hashim says. “A new franchise founder may be great at creating a brand, but it’s important to have the support of experts who have experience in brand growth and understand exit value maximization.”

Chris Conner of Franchise Marketing Systems, another expert Apte contacted, says: “Although capital is always good to an extent, there certainly are better times for the franchisor to consider taking in capital than others. It would be when a brand hits what many refer to as critical mass and they are about to turn that corner of growth.

“The right time for funding is when systems are in place to validate repeatable scale, there is an obvious growth plan where the capital will be put to use and the market is demanding more of your franchise brand,” Conner says.

Lani Dolifka, CEO of Watermill Express, heads one of the three brands featured each issue in Living Large. She told Apte she’s always relied on bank debt, in part as a way to hold herself accountable for prudent spending. Bank debt “has forced us to be very careful and conservative in how we spent our money because we have obligations to the bank,” Dolifka says. Read more in the April issue of Franchise Times.

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The latest news, opinions and commentary on what's happening in the franchise arena that could affect your business.

Tom KaiserTom Kaiser is associate editor of Franchise Times. He can be reached at 612.767.3209, or send story ideas to tkaiser@franchisetimes.com.
 
Beth EwenBeth Ewen is editor-in-chief of Franchise Times. She can be reached at 612.767.3212, or send story ideas to bewen@franchisetimes.com.
 
Nicholas UptonNicholas Upton is staff writer at Franchise Times. He can be reached at 612.767.3226, or send story ideas to nupton@franchisetimes.com.
 
Mary Jo LarsonMary Jo Larson is the publisher of Franchise Times Magazine and the Restaurant Finance Monitor.  You can find her on Twitter at
 twitter.com/mlarson1011.
 
Nancy WeingartnerNancy Weingartner is editor-at-large of Franchise Times magazine and the editor of the Food On Demand media project. You can reach her at 612-767-3200 or at nancyw@franchisetimes.com.
Follow her on Twitter at http://twitter.com/nanweingartner.
 

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