FranShares Review: Invest in Franchises Like Stock

For as low as $500, regular people will soon be able to invest and have partial ownership of franchises with FranShares. This FranShares review will run through exactly what FranShares is, how it works, and what returns investors can expect from FranShares.

What is Franchise Investing? A franchise is simply a business managed by a single entity (the franchisee) with branding, rights, and trademarks owned by a larger company (the franchisor).

People don't know that the franchising market is much bigger, with over 780,000 unique franchises in the US alone, 4000 franchisors, and more than 100 industries ranging from haircare and automotive to fitness and senior care. 

Though franchises are everywhere, investing in them is not so straightforward. The first way to do so is to contact the franchisor directly. This often requires lots of due diligence and hands-on work on the end of the investor.

What is FranShares? The brainchild of Kenny Rose, FranShares aims to provide everyday people with the opportunity to invest in franchises. Rose originally came from a very traditional finance background advising high net worth individuals on their investment strategy at Merrill Lynch. 

While he was there, he learned the true effects headlines could have on your investment portfolio. Wanting to help people build wealth without the media's influence, he joined the franchise world as a franchise broker.

How Does FranShares Work? Retailer investors pool together money to form a fund that FranShares fully manages. FranShares will then use this fund to purchase franchises (either directly or indirectly) and operate/control them.

How are Investments Selected? – Return on Investment (ROI): FranShares tends to avoid franchises with high buildout costs, employee headcounts, and inventory. Instead, it invests in franchises that can show net profits in their Financial Performance Representation (increasing potential ROI).

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