“As we round the bend into 2026, we’re receiving an increased volume of inquiries from our clients around how to fund their expansions,” said Matt Kramer, Managing Partner at Century Partners. “Brands are trying to balance demands of their expansion agreements with the economics of making deals pencil, which we’ve devoted ourselves to solving for the franchise space.”
Century Partners has over a decade of experience developing specific programs to help operators expand with little to no cost outlay and has successfully expanded the footprints of high-profile franchisees for brands like Wendy’s, Whataburger, 7 Brew and others by solving for the funding element.
Multiple options for efficient expansions
Century Partners has developed three innovative programs specifically for operators looking to expand without large cost outlays. One program, Direct Funding helps operators open stores with little to no capital of their own by utilizing a takeout partner.
The second, Equity Unlock is a sale-leaseback program that utilizes the same equity or pre-sales to fund multiple store openings.
The third program, M&A Offset can offset the cost of an opco+propco store acquisition by selling the real estate component, allowing operators to get into new stores at a massively reduced cost, or sometimes zero cost.
Direct Funding — How it works:
- Operator sources a second-gen space (operator can either source the spaces themselves or Century Partners can assist)
- Century Partners brings in a takeout partner to purchase the site
- Operator signs long-term lease
- Operator gets set up with working capital for TI, equipment
- Century Partners executes sale-leaseback transaction for takeout partner
- Operator gets a new store at essentially no cost, all expenses paid day 1 with additional working capital
Equity Unlock — How it works:
- Operator executes programmatic sale-leasebacks of existing stores
- Operator reinvests proceeds into opening next location or other business needs
M&A Cost Offset — How it works:
- Client finds an M&A acquisition opportunity to acquire stores and real estate
- Client signs a long-term lease
- Century Partners sources a buyer for the real estate
- Proceeds of the real estate cover the costs of the acquisition
- Century Partners arranges for the sale to close at the same time of the acquisition
The bottom line: the client gets into the stores at a much lower, or zero cost basis.
“In the last few years, we’ve helped operators open over 100 stores by using real estate equity, allowing the operators to get their equity back quickly, or not require their own equity at all. These methods can be used as part of an M&A acquisition or as a new site build, although many of our clients are sourcing second-gen spaces to improve the margins,” said Kramer. “These programs have helped clients go from their first store to their next 10 or 20 stores.”
“Generally, operators are surprised and maybe a little skeptical when we tell them we can help them get into new stores for little to no cost. Then we show them the dozens upon dozens of stores we’ve funded successfully for various brands, and the gears start turning,” said Kramer.
“In nearly all cases, we have been able to use these methods to significantly reduce or completely offset the costs of expansion the books for our clients,” continued Kramer.
For more information, contact Matt Kramer at [email protected] or visit www.centurypartnersre.com.