Unlocking Business Potential: Sean Morrison’s Revolutionary Approach to Franchise Liquidity
In the world of franchise business ownership, achieving liquidity often means navigating the tricky waters of equity sales and private equity acquisitions. However, Sean Morrison, President and CEO of Diversified Royalty, is pioneering a game-changing solution that sidesteps these traditional routes. With a stellar track record working with Canadian powerhouses like A&W, The Keg, and Boston Pizza, Morrison is introducing an innovative strategy to the U.S. market that promises to revolutionize how franchisors monetize their businesses.
A Fresh Take on Liquidity
Morrison’s approach is rooted in royalty transactions, a method that enables business founders to unlock the value of their companies without sacrificing ownership. This model is especially advantageous for businesses with around $5 million in EBITDA, significant growth potential, and primarily founder-led structures. By leveraging royalty transactions, business owners can monetize their ventures while continuing to benefit from future growth—a win-win situation.
Protecting Culture and Control
One of the biggest concerns for franchise owners considering liquidity options is the potential impact on company culture and relationships. Traditional private equity acquisitions can often lead to drastic changes that may not align with the original vision and values of the founders. Morrison’s strategy, however, ensures that founders retain control, thereby preserving the culture and relationships that make their businesses unique.
Through royalty sales, business owners can not only maintain control but also potentially double their business value and quadruple EBITDA. This is a monumental shift in how liquidity can be achieved, offering a much-needed alternative to the sometimes disruptive, private equity route.
Proven Success in Canada
For over 25 years, this royalty-based liquidity solution has been successfully implemented in Canada, helping numerous businesses thrive without compromising their foundational principles. Now, Morrison is set to bring this tried-and-tested model to the U.S., providing American franchise owners with a robust and flexible alternative to traditional liquidity options.
Financial Benefits and Tax Advantages
Beyond maintaining ownership and control, this approach offers significant financial benefits. Royalty payments are tax-deductible in Canada, which can lead to increased profitability. As this model is introduced to the U.S., it’s crucial to educate the franchise community about these potential tax advantages and the overall financial uplift that can be achieved.
A Call to Action
The introduction of this royalty transaction model in the U.S. represents a paradigm shift in how qualified, founder-led franchisors can achieve liquidity. It is an invitation to rethink traditional approaches and embrace a method that preserves the high returns for founders and owners, rather than transferring them to private equity firms.
If you are franchisor looking to explore alternative liquidity options, now is the time to learn more about this innovative approach. For further inquiries, Sean Morrison can be contacted at Diversified Royalty Corp. Don’t miss the opportunity to transform your business while retaining the control and culture that define your success.
This innovative approach is more than just a financial strategy; it’s a commitment to helping franchise owners unlock the full potential of their businesses without losing sight of their original vision. Explore the possibilities and take the first step towards a brighter, more profitable future.
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