At the recent Faegre Drinker Franchise Summit, I attended a panel session focused on private equity and M&A in franchising. The panel featured several respected leaders from both the franchise and investment sides of the industry.
During the session, I asked a question from the audience about the role of advisory boards before, during, and after a transaction. The answers were thoughtful and reinforced something I’ve seen again and again. The most valuable brands aren’t just built to sell. They’re built to perform.
Strong fundamentals are what attract smart capital. A well-run system with healthy franchisees and aligned leadership is always more investable than a brand that simply looks good on paper.
Here’s what stood out:
Build your board early. A functional board shouldn’t be a post-sale fix. It should be part of the leadership structure long before a deal is on the table.
Choose experience over resumes. Independent board members should bring real operational knowledge, especially in franchising. Good boards challenge and support leadership at the same time.
Never shortcut franchisee support. Field coaches are more than support staff. They offer a window into what’s working and where systems need attention.
The real work happens between board meetings. Governance is not a calendar item. It’s an ongoing discipline that shapes outcomes long term.
Alignment adds value. The best-performing brands are aligned across leadership, franchisees, and stakeholders. That kind of consistency is what investors look for.
If you want to create something private equity will compete to be part of, focus on building a business your franchisees want to stay in. The valuation will follow.
This is what I help brands do. If you’re thinking about growth, structure, or succession, I’d be glad to help you think it through.