'Recap & Grow' Your Franchise Empire with ApplePie Capital
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'Recap & Grow' Your Franchise Empire with ApplePie Capital

'Recap & Grow' Your Franchise Empire with ApplePie Capital

When it comes to multi-unit expansion, access to the right capital, at the right time can be a game-changer in ensuring success. Having funded nearly $2 billion in loans across 200+ brands since 2015, ApplePie Capital is a relationship lending partner that deeply understands franchising and the unique needs of franchisees at every stage of growth.

The Recap & Grow program is a key pillar of ApplePie’s franchise specific solutions and was built for existing operators looking to accelerate growth. Recap & Grow uses embedded equity and the ApplePie Core loan to recapitalize (lend against) the existing business and access up to 100% of the funds needed for new unit development. Watch our Recap & Grow video to see how it works.

Consider the following example. A franchisee, Jack, currently owns two units, and wants to open five more over the next few years. Each new unit costs $1m. The existing businesses are debt free and valued at a total of $2m, however there are only $500k in liquid assets.

With ApplePie Core, Jack can take $1m cash out of his existing units with a recap loan and use the funds to build his third unit which would be debt free. This can be repeated until all 5 units have opened without any more cash out of pocket. This structure results in a higher return on assets and leverages equity in the business without tying up personal assets.

ApplePie’s relationship managers are brand specialists. Armed with well-defined goals and a snapshot of your financial picture and operations, ApplePie takes a consultative approach to create and execute a custom multi-unit financing strategy that ensures development stays on track.

The key to smart multi-unit expansion is to match growth plans with the right capital solutions.   “The biggest problem we see with franchisees in the early stages is not using the proper balance of equity and debt to efficiently meet their capital and operational abilities,”  says Ron Feldman, ApplePie’s Chief Development Officer. “Often, a franchisee will use too much cash to fund expansion. They borrow too much or they don’t borrow enough.”

Using ApplePie’s signature Core loan product, the Recap & Grow program was structured for expansion and accelerates multi-unit franchise growth faster than traditional franchise lenders will allow, without pledging personal assets. Along with their suite of franchise specific solutions, ApplePie also offers SBA and Remodel or Equipment loan options from its diverse lender network. Their simplified, fully online application process enables borrowers to access multiple loan options and fast and efficient funding with just a single application.

“We want to take you from the first unit to your end place – whether that is 10, 20 or 50 units,” says Feldman. “Whatever that number is, we will hold your hand along the way to make sure you are optimizing the capital to meet your personal objectives. 

Visit applepiecapital.com/grow to submit your inquiry online today or contact us at (844) 735-GROW to schedule a free consultation to discuss your growth plans.

ApplePie Capital
ApplePie Capital provides a fresh new approach to franchise financing that is focused on your growth and success. Learn More

Published: December 7th, 2022

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