FranShares operates a marketplace matching franchise operators with investors who can buy fractional ownership in franchise locations with minimum investments as low as $500. The platform requires franchisors to disclose financials, executive backgrounds and litigation, and offerings are subject to SEC rules; franchisors are regulated by the FTC. FranShares has built a community of about 43,000 investors — nearly half millennials or Gen Z — spanning retail, accredited investors, family offices and private equity. Investors on the platform have backed locations across three industries (food, kids’ fitness and waste management) with brands including Teriyaki Madness, Smash My Trash and Hawaiian Bros. The company charges franchisees and franchisors a monthly subscription for investor-relations management and charges investors a flat annual platform fee plus a small one-time acquisition fee per offering. FranShares plans to eventually add real estate to allow investors to "vertically integrate" their investments. FranShares provides fractional franchise ownership, letting retail investors buy stakes in diversified portfolios of franchise locations with minimum investments as low as $500. The company is preparing a Regulation A+ SEC filing to permit both accredited and non-accredited investors to invest in its first fund. FranShares completed a $1.42 million pre-seed raise led by Chicago Ventures and says the funding will allow it to complete the SEC filing. It has partnerships with over 500 franchise brands that are potential candidates for the initial portfolio. The founder, Kenny Rose, is a franchise expert and media commentator whose work has reached a large audience. No revenue or user metrics were disclosed in the article.

Total raised

$6M

Funding rounds

2

Latest round

Seed

Latest activity

Jul 2024