Would you invest in a franchise of a business that has just a single location?

MAJID ABAI

Principal

Abai Group

I wouldn’t invest in a franchise that has only one location because the principals don’t know about multiple-location operations, logistics, processes, training, management, finance and a number of other aspects.

KATHY KELLOGG JOHNSON

Chief Sustainability Officer

Kellogg Garden Products

No. There are too many unknowns and location-dependent variables that require studying a couple of different locations; the supply chain and the patrons in each would be a better predictor of success.

ROBERT L. KAHAN

Attorney

Liner

This is not a yes or no question. Normally, before investing in a franchise business, especially if you are buying a franchise, you would want to make sure that the success of the current unit is not on account of the existing location. On the other hand, if it’s a hot concept with a solid business plan, it could be worth the risk.

MARC FELDMAN

Partner

DPL Asset Management/
Korea Israel Life Science Fund

Sure, if I liked the business model. I would also have to be comfortable with the management, what the franchise was selling, valuation and the overall business plan.

ADAM LEVIN

Managing Director

Vert Capital

No. I’d like to see a longer track record. But if I could end up getting economics better than typical franchisee economics I might be more willing to do a type of deal like that, since we’d really be helping them build their brand.

KRISTIN EBERTS

Principal

Tutor Eberts Design

Yes, I would invest in a franchise of a business that just had a single location, but I would like the business to have a clear plan for development and growth outside of the single location.