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MAKING THE MARKET
FOR HIGH-POTENTIAL
BRANDS

There’s a gap in the franchise development market. Private equity firms are investing in growing mid-size companies while ignoring the potential of infancy brands with fewer than 20 units and earning less than $5M EBITDA. But we know size isn’t everything.

We made a space where promising players can get their start before moving on to the big leagues. We’re experts in identifying what’s working (and what isn’t) within a brand’s business model and streamlining that model for unprecedented, nationwide growth.

THE PIVOTAL APPROACH

We rely on our decades of franchise growth experience, a national-level network of developer partners, and skillful identification of growth potential to prepare emerging brands for acquisition by mid-tier private equity firms, where they’ll find continued growth and success. Here’s how our proven process works.

Investment

First, we find and evaluate an emerging concept, examining their business model and market position for key growth factors. If they show strong potential for growth, we’ll partner with brand leadership and begin the growth process through one of three brand equity investments.

Growth

We establish a line of communication to align interests between the brand’s operators and executive team to create a systemwide growth culture, utilizing our network of partners to grow the brand to at least $5M in EBITDA or 50-100 units.

Exit

Finally, we initiate a liquidating event after a period of about 24-48 months, funneling the brand to a private equity fund searching for their next big concept. We’ll sell the whole company or sell our equity back to the founders at a predetermined buyout.

BRAND SELECTION CRITERIA

To ensure strong and rapid expansion, we work with and grow 3-5 brands simultaneously that each fit into a set target arena: on-trend QSR concepts, health and nutritional foods, and iconic brands.

  • 5-20 operating units
  • Less than $5M EBITDA
  • Strong unit-level economics (sales per square foot, limited build out, greater than 3:1 sales to investment ratio)
  • In a high-growth market with massive white space
  • In a fragmented market with no clear leader
  • Amazon-proof & millennial-centric

INVESTMENT OPTIONS

Working side-by-side with founders and brand leadership, we’ll decide on the best investment option to implement our proven strategies and initiate brand growth.

Growth Equity

Pivotal Growth Partners purchases growth equity and manage business development of all future growth.

Plurality Ownership

Pivotal Growth Partners purchases an equity share to facilitate operational excellence and growth.

Complete Buyout

Pivotal Growth Partners purchases entire concept to direct operations and development and grow the brand.

BRANDS WE HELPED GROW*

  • Fast & Serious, Franchise Times Smartest Growing Brands, 2018

  • Top 200 Franchise Chains by Worldwide Sales, Franchise Times

  • #3 Franchise, Franchise Gator Top 100, 2017

  • #2 Franchise to Buy in the Medium-size Segment, Forbes, 2016

  • Golden Chain Award, Nation's Restaurant News, 2017

  • #3 Best Franchise for Vets, Military Times, 2018

  • #2 Fastest-Growing Chain, Nation's Restaurant News Top 100, 2016

  • Voted America's Favorite Pizza, MarketForce, 2017

  • Pivotal Growth Partners’ Co-Founders Named to The NRN 2020 Power List: Reader Picks

    Nation's Restaurant News, The Power List 2020 Reader Picks

*These and other brands identified are examples of companies we worked with to grow their brands. By listing these brands, we are not suggesting or implying a formal affiliation, sponsorship, or endorsement by these companies. We just did great work for them.