Business Plan

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Syndicated Franchise: Syndicated Fast Food/QSR Franchise Acquisition

  1. Executive Summary

Syndicated Franchise aims to acquire and optimize the operations of fast food, fast casual and pizza franchises in the $250K-$1M valuation range that are generating positive cash flows. By pooling capital from investors along with our management expertise in areas like operations, marketing and franchising, we can unlock the growth potential of these established businesses.

Our unique syndicated model allows investors to retain a majority ownership stake in each acquired franchise, while our team takes a minority ownership focused on implementing operational and marketing efficiencies. This investment thesis is supported by our leadership’s experience in startups, capital raising, SEO marketing and scaling operations.

  1. Business Description

Syndicated Franchise will acquire profitable fast food/QSR franchises like burger, chicken, pizza and Mexican concepts through a syndicated investment model. Investors contribute capital and assume the majority stake, while our team utilizes a minority stake to drive improvements in operations, marketing and financial management.

Target franchises must be profitable with strong unit economics and growth potential that can be unlocked through optimizations. A database of national broker/agents provides a pipeline of pre-qualified acquisition opportunities meeting our criteria.

  1. Market Analysis

The US fast food/QSR franchise market was valued at $274 billion in 2022 and is projected to grow at 6.2% annually. Major brands in our target segments like McDonald’s, Burger King, Domino’s and Taco Bell collectively operate over 40,000 franchised units nationwide, representing a significant pool of potential acquisition targets.

Within this market, we will focus on franchises meeting our criteria of $250K-$1M valuation and positive cash flows, often motivated sellers looking to exit profitably. Our targeted metropolitan areas have a high density of these types of franchises across our preferred segments.

  1. Organization & Management

Syndicated Franchise is led by a team of startup operators and investors with experience raising capital, launching new businesses, optimizing operations and executing marketing strategies

The management team will recruit a syndicate of investors for each acquisition opportunity. Investors will own the majority stake while our team takes a minority ownership focused on overseeing management, operations and marketing optimization.

  1. Marketing & Sales Strategy

Syndicated Franchise will execute a two-pronged marketing strategy:

  1. Selling the value proposition of our syndicated model, operational expertise and marketing capabilities to prospective franchise sellers and brokers. This leverages our national database of brokers providing inbound seller leads.
  2. Promoting open acquisition opportunities to our investor network through marketing campaigns, events and outreach. This ongoing effort grows our pool of capital partners for future deals.
  3. Financial Plan

While the specific financial metrics will vary for each acquired franchise, we model the following high-level economics for a typical deal:

Purchase Price: $500K Initial Investor Capital Raised: $300K Annual Revenue: $1.2M Annual Profit: $180K

In this model, investors would earn a 30% ROI in year 1 through profit distributions. Syndicated Franchise takes a 20% minority stake and $36K in annual management fees.

Investor payouts will be supplemented by securitizing brand franchise agreements, implementing operational efficiencies, and marketing optimizations to grow revenue and profits over time.

  1. Implementation Plan

Our implementation plan has 3 key phases:

  1. Sourcing: Continually evaluate inbound leads from brokers against our criteria. Conduct financial/operational due diligence on target acquisitions.
  2. Acquisition: Raise capital from investors, secure approval from franchisor, negotiate APA and close transaction.
  3. Optimization: Immediately implement our management team’s 30/60/90 day plan to optimize operations, local marketing, financial reporting and growth initiatives.
  4. Risk Management

Key risks and mitigations include:

  • Franchise Risks: Carefully review franchise agreements, approval processes and work requirements upfront
  • Operations Risks: Leverage management team’s operating experience and deploy comprehensive food/premises audits
  • Financial Risks: Implement internal controls, regular audits and profit distribution processes
  • Market Risks: Focus on recession-resistant QSR concepts and implement promotions/value offerings during downturns
  • Have contingency capital reserves and resource plans in place to address underperforming units
  1. Appendices