Industry News | December 11, 2013

Fransmart Launches New Private Equity Firm FranInvest

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Fransmart—the franchise development company that launched the franchise programs for Five Guys Burgers & Fries, Qdoba Mexican Grill, Vapiano, Zpizza, Freshii, and several others—formed FranInvest to make early stage investments in emerging restaurant concepts. The new firm will serve as an investment vehicle for unique, emerging restaurant brands that have the clear potential to become segment leaders in the restaurant industry.

Dan Rowe, founder and CEO Fransmart, has turned dozens of emerging restaurant concepts into national and global chains, and identified and grew brands like Five Guys Burgers & Fries and Qdoba from small businesses to the powerhouse chains they are today.

 “I’ve had great exposure to incredible concepts whose growth was held back by capital limitations. Young brands that have the right combination of unique branding, strong positioning, and exceptional food get distracted when they are cash strapped and operations inevitably suffers,” Rowe says. “I can only imagine how much faster even our most successful brands could have grown if they had easier access to growth capital in the very early days.”

FranInvest plans to provide equity funding ranging from $250,000 up to $2.5 million They will actively seek brands in target segments that have the potential to grow into sizeable chains.

 “Our combination of experience in the restaurant franchise industry and private equity will prove extremely valuable to our chosen restaurant concepts in the early growth stage,” Rowe says. “The benefits will go beyond just a monetary investment; these young brands will be exposed to a wealth of knowledge and growth tools to expand their concept on a national, or even international, level.”