When CrowdFranchise – the web’s first marketplace for crowdfunding new franchising endeavors – launched back in December, CEO Mandy Calara had an idea that he was on to something big.
“There are more franchises that are open on a yearly basis than there are new businesses,” said Calara. “To me it looked like a great opportunity.”
On February 15, CrowdFranchise closed on their first deal, raising over $650,000 for a new location of frozen yogurt shop Forever Yogurt in the Wicker Park neighborhood of Chicago. And they did it in just 66 days.
CrowdFranchise – which worked with Launcht to develop their own platform to fund their franchise brands – draws upon the power of crowdfunding to unlock the potential in neighborhoods, allowing them to fund the businesses that they know will fit their community best. Investments start with as little as $1,000 and once projects are fully-funded investors participate in the building, monitoring and management sides of the business, while also sharing in any profits from their new franchise.
“What this model does is allow us to pull together all of these resources, all of these potential franchisees who want to have a stake in the community,” said Calara.
Join me on the blog next week when I take a look at what the success of CrowdFranchise might mean for the future of crowdfunding.