Practice Areas

Paul Woody Highlights the Allure of Predictable Revenue Streams for Private Equity Firms in PE Hub Interview

November 13, 2023

Paul Woody HeadshotIn a recent article from PE Hub, Paul Woody, a Franchise attorney at Greensfelder, highlighted the appeal of franchise deals to private equity (PE) firms. The franchisor-franchisee relationship's stability, where franchisees retain the majority of gross revenue but pay royalties for brand usage, creates a predictable revenue stream. This predictability is attractive to lenders, allowing PE firms to securitize future royalties, often securing lower interest rates. Woody underscores the significance of maintaining this relationship, emphasizing the financial advantages and stability associated with franchise models.

Read the full article here.

This website uses cookies to improve functionality and performance. If you choose to continue browsing this website, you consent to the use of cookies. Read our Privacy Policy here for details.