Briidge Syndicates Business Plan

We add value to the franchise startup process by connecting aspiring and proven operators with interested investors, opening the door to franchise ownership.

Executive Summary

Briidge Syndicates is a fund management company that will organize funds and syndications to aid in franchise ownership.

Three main parties are involved in our process;

Operators - usually under-capitalized or lacking other key resources helpful in becoming a franchise owner. With our syndications we raise the full capital amount required to launch their franchise business.
Investors - most investors might not have liquid capital available required to fund a multi-unit franchise operation. With our syndications they have the opportunity to invest in vetted and qualified franchise investments, at lower minimum investment amounts, and alongside other private investors. And they are passive investors in these partnerships.
Franchisors - a large percentage of prospective applicants in a brand don't have all of the pieces (operating partner and total capital investment) needed to progress through the franchise development process. Most franchisors prefer, and benefit from, larger, multi-unit franchise partners and therefore fewer total franchisees in their system.

We will qualify the operator, evaluate the franchise brand (economics, location, and operational plans), then create an investment offering and present it to our network of accredited investors.

Then we will allocate capital for the project and partner with the operator and launch the franchise.

Problem

There is an underserved market of under-capitalized operators who aspire to own a franchise business. Means and opportunities for them to access capital are limited. The SBA loan process is very limited and there are significant hurdles for operators to jump through.

There are also not many great investment opportunities, at low minimum check sizes, where investors can invest and passively own cash flowing franchise businesses.

Bridge: Something that is intended to reconcile or form a connection between two things.

Solution

Franchise Syndications - utilizing Single Purpose Vehicles (SPV)

By connecting the operators with investors and partnering with qualified franchise brands everyone wins; the operator, the investor, and franchise brands. We open the door to under-capitalized operators and provide investors a passive opportunity, at low relative minimum investment amounts.

Common deal structure:

Operator puts a portion of personal capital into Briidge as their "skin" in the deal
Operators will have 20-40% equity in a deal depending on a variety of factors
The SPV (pool of investors) will own the remaining equity %
Briidge charges an annual management fee and carried interest on each deal

We target a total return of capital to investors within 2-3 years on each deal. We include a preferred return for investors meaning the operators equity distributions and Briidge's carried interest doesn't start until investors principle is returned.

Products & Services

Briidge will create and manage funds, SPV's, and will provide franchisee-focused consulting and support. We also plan to build a large community and network of investors and see those relationships and connections as a high-value product for Briidge.

Our background and experience qualifying franchise operators is critical to us selecting operators that we will work with and raise capital for. We also have in-depth experience in qualifying and selecting great franchise brands with experienced management teams, great unit-economics, and excellent on-going support for franchisees. We want to prove our ability to find and create great deals for investors and provide solid and steady returns.

We plan to raise an initial debt fund that will act as an initial line of credit for each franchise deal that we move forward with. It will be a $5-10M evergreen debt fund. A percentage of the fund will be set aside for deals focusing on Diversity Equity and Inclusion. We may also utilize leverage in certain circumstances in the form of re-capitalization programs - allowing us to have a faster return of capital to investors and maintain ongoing debt service.

Customers & Competition

Our customers are primarily our investors. The franchisors and operators are more than customers, they're our partners. We will work closely with franchisors and feel like we are extremely aligned with their goals. We will provide ongoing support and guidance for all of operators as they are building and managing the day-to-day operations.

We truly feel that this is a blue-ocean strategy. There are not competitors doing what we are doing for the franchise industry. At least with the focus of opening doors for both under-capitalized operators and investors.

Why we love franchises

Franchises have a higher likelihood of success than other, traditional, businesses and startups
Franchise owners have a shorter learning curve because they are working within a proven and established business system
Proven systems or "playbooks" are provided by the franchisor in key areas such as build-out, marketing, and operations
Product market fit has already been established by the franchisor
Franchisees gain valuable support and mentorship from franchisor and other franchisees
Cash flowing business
High exit value within 4-7 years

Strategy & Implementation

We look for qualified operators and franchise brands that we can play long-term games with. Here is some of our criteria when evaluating operators and brands:

Operators B.R.I.I.D.G.E

B - Bought in

R - Respect

I - Integrity

I - Intelligence

D - Drive

G - Grit

E - Energy

Franchise Brand - B.R.I.I.D.G.E

B - Brand

R - Revenue -- does it make money?

I - Indicators (performance and financial)

I - Industry

D - Demonstrated Support

G - Growth potential

E - Economics for investors

We plan to work with established communities of folks interested in franchise ownership and franchise investing. When we raise money in SPV's we plan to utilize Reg D 506(c) exemptions that will allow us to market our offerings to these existing communities. We are also expanding our network of high-net-worth individuals and family offices as each deal will provide great investment opportunities for them.

The Team

Shanell Beecher

Shanell has worked for Salt Lake County as the Director of Accounting for the last 10 years.
Shanell also has experience in public accounting, performing audits, consulting, and compilation services for many industries including: private, public, nonprofit, and SEC entities.
Shanell is a real estate investor and has personally organized investments in franchises and other start-up companies.

Lowry Akers

Lowry has spent the last 6 years in the franchise industry, working for two separate multi-unit franchisees and the nation’s fastest-growing franchisor (Crumbl Cookies).
Lowry personally is a franchisee, a partner in multiple fund management companies, and serves as an advisor to startup franchise brands.

Colvin Akers

Colvin has spent the last several years in franchise development and has awarded over 250 new franchise licenses (helping to create the Nations Fastest Growing Franchise, Crumbl Cookies).
Colvin spent the prior 4 years in the food-service industry managing the operations, sales, and route delivery for multiple territories.
Colvin personally owns multiple franchises and has invested in franchises, eCommerce, and other startup tech companies.

We are also building our advisory board with individuals who will add value in the following areas:

Business strategy and organization
Legal (SEC focused)
Franchise focused communities across several media outlets (podcast, newsletter, masterminds, etc.)
Investment, venture capital, and franchisor/franchisee experience

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Active or Upcoming Deals

Active:

Pursuing a multi-brand / multi-territory project with Horse Power Brands. We’re exploring a mid-size market that would accommodate ~4 territories.. HorsePower Brands is a portfolio company of franchise brands in the service industry. We will be able to repeat this process with HPB in several markets with different operators.

The 4 brands we are targeting for this project are:

Hero’s Lawncare: Lawn care services, pet waste removal, fertilization, and irrigation
Mighty Dog Roofing: High quality roofing services
iFoam: Spray foam insulation
Groovy Hues: Paint, power wash and gutter services

Upcoming:

Additional deals with HPB
Potential opportunity with retail brand
Potential opportunity with other home service brands