Private equity is back.  In the last year there has been significant funding by private equity for the multi-unit concept world (this has been particularly true with restaurants).  In fact, the pace of investment has accelerated.

What Is Protected Under Copyright Law?

Sale/leasebacks have been around for a long time.  At times, the franchise industry has used sale/leasebacks as a primary source of financing, particularly for real estate intensive concepts. There have been many groups that have been involved in the sale/leaseback market - major players, like GE, to niche players (who have basically served as real estate developers and then end up entering the sale/leaseback transaction as a culmination of the development work).

I would like to devote this month’s article to a topic that two of my partners, John Berg and Scott Husaby, have spent a great deal of time on the past few years.  John and Scott are panelists on the Franchise Times Exit Strategies Seminar Series and have been travelling around the country speaking to franchisors and franchisees on the topic of exit planning.

In these volatile economic times, the challenge every franchisor faces is effectively monitoring the financial health of a franchise system.  Monitoring the health of the system is not just a luxury but a necessity.

As covered in last month’s column, there were a number of positive developments in franchise finance in 2010.  In addition, the franchise trade press has been active with reports of many encouraging developments.  Still, not all the news is positive.  In a discussion with my partners, Randy Evans and Rick Gibson, we thought it would be interesting to further elaborate on last month’s column and look at the challenges and opportunities for 2011.

Each year I reflect back on the high points of the previous year and look at the ideas, transactions and developments I think had the greatest positive effects on financing for the franchise community.  In reverse order, here is my list of the ten best things that have happened in 2010 for franchise finance:

Old benchmarks are being exacerbated by the economic downtown and the change in consumer attitudes.  Here’s how to redefine the long-standing benchmarks for operating franchise businesses:

Is your delivery business adequately reimbursing your delivery drivers for the travel expenses they incur in making deliveries?  Domino’s Pizza (“Domino’s”) has been sued by a group of its current and former delivery drivers (“Drivers”) in Minnesota federal district court.