FranShares Review: Invest in Franchises Like Stocks

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). When thinking of franchises, the names that usually come to mind are McDonald’s, Subway, and Starbucks.  

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.

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. 

As a franchise broker, he educated individuals on the franchise world, matched them with franchises based on their budget, skillset, and goals, and then coached them throughout the research process to make a safe investment.

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. After successfully building up these businesses, investors can realize a return in two ways.

1. The increased equity value of the franchises.

2. Ongoing dividend payments (after one year)

Each FranShares fund is registered with the SEC for a Regulation A+ raise. This allows investors to have complete transparency, participation by accredited and non-accredited investors, and a broader reach for the fund.

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