Latest / Franchise Conversations with Fexingo: Buying, Running, and Scaling Franchise Businesses
How Franchisees Are Using Revenue Sharing to Fund Growth
Lucas and Luna explore the rise of revenue-sharing agreements among franchisees as an alternative to traditional bank loans and SBA debt. They break down real examples like a multi-unit Jimmy John's operator who raised $2 million from passive investors at a flat 8% revenue share, and a franchise group that pooled capital to fund a new brand rollout. The episode covers the legal mechanics, the typical terms (5–8% of top-line revenue for 5–7 years), and the risks—including how revenue-sharing can cap upside and create perverse incentives. Lucas explains why this model is gaining traction…
The skinny
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