FranShares

FranShares was founded in 2020 by Kenny Rose, a franchise industry veteran and author, with a specific mission: give everyday investors access to cash flow and equity returns from passive franchise ownership. The platform's model is straightforward — FranShares identifies established, cash-flowing franchise concepts (think service businesses, QSRs, and small commercial operations), raises capital from accredited and non-accredited investors via SEC-qualified Regulation A+ offerings, and acquires multiple franchise locations under a single fund structure. Investors hold pro-rata interests in that fund, receive distributions from franchise net operating income, and participate in capital appreciation when franchises are eventually sold. FranShares handles day-to-day operational oversight, including selecting franchise operators, monitoring performance, and making strategic decisions about acquisitions and divestitures.

The platform's first fund — the FranShares Hospitality Fund — closed in 2023 with ~$8M raised and a portfolio of quick-service restaurant franchises in the Southeast. As of early 2026, the platform is actively raising for additional funds targeting new franchise categories, with minimum investments typically starting around $500. Target returns are modeled at 14% IRR annualized, with income distributions beginning 12–18 months after acquisition as franchises ramp to stabilized operations — a structural delay investors should factor into their liquidity planning. Target hold periods run 5–7 years, concluding with franchise sale and distribution of proceeds.