Accelerate the development of your franchises through co-investment

‍Introduction‍

Developing a franchise without going through the “bank” box is an attractive option, as the pace of expansion of a network determines its visibility and profitability. In 2025, retailers are looking to duplicate their concepts more quickly to capture promising territories. However, access to credit is becoming more complex (guarantees, deadlines, etc.).

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In this context, co-investment, whether it is club deals or private investment offers (via the filing of a Synthetic Information Document with the AMF), can appear as an innovative lever: instead of mobilizing only personal contributions, loans or internal financing, why not open the capital of a new unit to a targeted community? Loyal customers, existing franchisees, local partners or institutional investors can thus become co-investors, sharing risks and gains.

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This model, far from being limited to a communication operation, offers several advantages: it makes it possible to reduce the use of debt by mobilizing external funds, to accelerate the commissioning of points of sale by shortening financing deadlines, to strengthen local roots while stimulating the motivation of stakeholders and above all to benefit from the strength of a network and/or a community.

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In this article, we will analyze the adoption status of co-investment in franchises, its assets and investor profiles, and then we will see the elements that are involved in its implementation strategy.

2. Why rethink the financing of openings?

The traditional franchise financing scheme is based on three pillars: the personal contribution of the franchisee, the bank loan and sometimes a contribution from the head of the network.

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This approach, when credit conditions remained relatively flexible, is now showing its limits. Key interest rates have risen significantly since 2022, making loans more expensive and longer to negotiate. Moreover, not all candidates have the guarantees or the necessary contributions to convince a bank, even if their concept is relevant.

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Moreover, the participation of the parent company may seem attractive, but it often comes up against a strategic choice: supporting each opening would risk diluting its resources or creating inequalities in deployment across territories. Result: many implementation projects remain on hold, due to a lack of funding in line with the desired pace.

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Co-investment then appears to be a multiple response:

• It opens up the capital of a new unit to supplement the franchisee's contribution and reduce the necessary debt.
• It can transform each opening into a real marketing and community event, when loyal customers or local actors are combined, reinforcing reputation and commitment from the start.
• It offers greater flexibility to the business plan, by adjusting the division between equity and debt more finely, and can make it possible to test new formats without immediately burdening borrowing capacity.

• Finally, it meets growing expectations in terms of transparency and governance: thanks to a clear monitoring of the allocation of funds and performance, it reinforces the confidence of investors, whether individuals or institutions.

• It allows each player in the network to invest a little more in franchising, which only reinforces the strength of the network.

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3. What profiles to motivate and mobilize to co-invest in a franchise.

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Franchisors now have a pool of investors beyond banks and private funds. Existing franchisees, already invested in the success of the concept, can choose to strengthen their position within the network while sharing the success of a new establishment, which promotes both the exchange of best practices and the feeling of belonging.

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For loyal customers, their membership often results in regular purchases and a strong recommendation: offering them to become co-investors turns their relationship into a real partnership, with exclusive advantages (early access, private events) and an increase in local word-of-mouth.

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Among local actors, some operators or entrepreneurs of VSE/SMEs with excess cash flow are interested in a reasonable ticket to diversify their portfolio and boost the economy of their territory. Still others, such as regional business angel networks, although usually oriented towards start-ups, appreciate the stability and visibility that a franchise project offers. Their expertise and their address book can also accelerate the development of the point of sale.

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Finally, landlords or land owners find it interesting to secure a long-term tenant and to participate in the valuation of the business, while family offices and regional funds, looking for opportunities on a human scale linked to a specific territory, are seduced by the transparency and the prospects of return offered.

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By finely adapting the discourse and the terms of subscription, from the amount of the ticket to the financial and governance rewards, the franchisor maximizes its chances of quickly mobilizing the necessary funds and of transforming each opening into collective success.

4. Engaging with investors and generating buy-in

Managing the network of actors consists in identifying opinion leaders and key stakeholders, experienced franchisees, local entrepreneurs or investor circles, and in establishing a targeted dialogue. These ambassadors contribute to disseminating the proposal and legitimizing the approach among their own audience.

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It is also essential not to limit efforts to individual subscribers: investment advisers and wealth management structures play an influential role in providing professional insight into the project.

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Finally, regular communication, before and after the closing, makes it possible to maintain the collective dynamic. Sharing progress points and key indicators builds trust and sets the stage for future campaigns.

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By placing people and dialogue at the heart of the mobilization strategy, each investor is transformed into a true partner, ensuring a smooth, committed and sustainable launch for new units.

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5. Choosing your co-investment strategy: restricted club deal or expanded openness?

When it comes to moving from idea to action, you must first clearly define the profile of the participants. A narrow circle, limited to a few dozen investors, reinforces the feeling of exclusivity, simplifies governance and limits the resource requirements for managing requests. Conversely, a more open transaction, intended for a large number of co-investors, broadens distribution and media impact, while requiring a dedicated organization to answer questions and support each participant.

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Beyond that, the size of the circle also determines the range of entry tickets: a small club implies a high amount per investor, while an open operation requires an accessible ticket to promote membership. This parameter also guides the communication strategy, which is discreet and personalized for a small committee, or educational and multi-channel for a large audience.

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Conclusion

The tightening of credit conditions, the pressure on opening times and the quest for territorial exclusivity now invite us to take a close interest in franchise co-investment. Rather than remaining confined to traditional patterns, exploring this lever makes it possible to concretely evaluate more agile solutions, while measuring the commitment and added value that a circle of co-investors can bring to each new unit.

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By focusing on co-investment now, franchise networks can not only diversify their sources of financing, but also create a real community of partners committed to supporting their development.

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To industrialize and perpetuate these campaigns, it is possible to rely on a white label platform such as that of Fraktion. Thanks to the digitalization of the investor journey, the automation of reporting, the tokenization of securities and the centralized management of subscribers, this solution helps to professionalize the investor relationship and to quickly repeat the operation, without burdening internal resources.

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springs 

¹ : franchise-fff. com

2: Ai-cio.com