3:20 What is a multi-unit business or franchise? |
3:55 What types of buyers purchase multi-unit businesses? |
5:15 EBITDA multiples for multi-unit businesses |
6:20 What are private equity firms’ holding periods when they purchase a multi-unit business? |
6:20 Private equity firm hurdle rates (minimum required rate of return) |
7:30 Capital structure improvements for multi-unit businesses |
8:20 Examples of multi-unit franchises |
9:15 Scalability and margins of multi-unit businesses |
11:00 Overview of general and administrative (G&A) expenses |
11:45 Do venture capitalists invest in new multi-unit concepts? |
12:40 Geographic considerations for multi-unit businesses |
13:00 Scalability or profitability of multi-unit franchises |
14:00 The value of talking to other franchisees in the system (a.k.a. “validation”) |
14:30 Corporate units vs. franchisee-operated units |
15:30 Multiples for franchisors vs. franchisees |
18:15 How important is franchisee profitability to long-term franchisor success? |
20:10 Franchise Disclosure Document (FDD) — Item 20 — Outlets and Franchisee Information |
21:30 Overall consumer preferences and market dynamics and their effect on market valuation |
24:30 The corporate vs. franchisor decision to grow |
27:00 Is geographic concentration important for franchisors? |
28:50 Success rates of independent businesses vs. multi-unit or franchised businesses |
30:30 The impact of minimum wages on the franchised business model |
33:00 Typical costs for multi-unit franchises |
34:25 How important are operating metrics to buyers if EBITDA is still strong? |
35:45 Common EBITDA multiples for multi-unit businesses based on size and type — and the impact of predictability on EBITDA multiples |
37:50 Who purchases franchisor business models? |
38:20 Which are the most highly desired multi-unit franchises? |
39:45 What is a business combination? |
41:15 How often do private individuals vs. private equity firms invest in multi-unit franchises? |
41:50 I have between $10 million and $20 million to invest — should I consider investing in a multi-unit business or franchise? |
43:50 Are there rules of thumb for minimum EBITDA per unit? |
45:00 What are the characteristics of a good multi-unit business? |
48:30 Minimum revenue requirements per unit |
51:00 What are the most common legal issues in multi-unit M&A? |
53:00 Single vs. separate franchise agreements |
53:50 Do most multi-unit business owners prefer to own the real estate? |
55:05 How negotiable are franchise agreements? |
56:30 What are the most contentious issues in a franchise agreement? |
58:25 How much influence do franchise groups have over the franchisor? |
59:30 How does litigation affect a franchisor’s ability to sell new units? |
1:03:25 What is a workout? |
1:05:20 Who are the most difficult parties to negotiate with in a workout? |