Private Equity in Franchising Drives Supplier M&A Growth

Private equity firms have long invested in franchise brands, but a recent Franchise Times article highlighted another area drawing increased attention: the companies that help franchises grow behind the scenes.

Since 2021, investors have bought a growing number of franchise suppliers, including broker networks, franchise development firms, lead generation platforms and marketing companies. Instead of putting money behind one brand at a time, many are looking at the businesses that help franchise systems find candidates, support growth and build momentum.

The International Franchise Professionals Group illustrates that trend. Founder and CEO Don Daszkowski first brought private equity into the business in 2022, citing a desire for additional resources and strategic guidance. Since then, IFPG has expanded through acquisitions, adding Franchise Business Review, Business Alliance and St. Jacques Marketing, which was relaunched as Franchise Ignition.

Andrew Alexander, senior managing director at Levine Leichtman Capital Partners, said the firm's interest extends beyond traditional franchise ownership.

"With IFPG, we saw an opportunity to invest not in a single brand, but in the infrastructure that powers growth across the broader franchise ecosystem. The franchise sales and development function serves as the gateway to system expansion, yet historically it has been fragmented and relationship-driven," Alexander said. "That aligns closely with LLCP's strategy of backing businesses where added resources and strategic support can unlock scalable, repeatable growth."

Others see similar opportunities. Alicia Miller, founder and managing director of Emergent Growth Advisors and author of "Big Money in Franchising: Scaling Your Enterprise in the Era of Private Equity," said suppliers offer investors a way to spread risk across multiple sectors while benefiting from franchising's resilience.

"If you believe in the resilience of the franchise category, working with a supplier expands or diffuses your portfolio risk in a way, because now you can serve franchises in all kinds of different sectors," Miller said.

The same playbook has emerged elsewhere in the industry. Franchise Fastlane has expanded through acquisitions under Southfield Capital's ownership, while firms such as Greens Farms Capital and L2 Capital have assembled portfolios designed to provide franchisors with a broader range of services under one umbrella.

As private equity firms continue searching for scalable, recession-resistant businesses, the companies supporting franchise growth appear poised to remain firmly on their radar.