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Equity Groups
How might the private equity groups which have been given permission to buy up to 100 locations each affect an association such as this?
There is a long history of successful independent franchisee associations which have included private equity groups as members. In our case, here are some points to consider: They have the same goals and interests- such as unit level profitability; their dues and participation help with the overall strength of the organization. We have our Board of Directors who will represent each of 7 regions and 2 At-large members, most issues are voted on by these elected board members. Currently, the bylaws dictate that anything going before the organization in an at-large vote will need a 2/3 majority to pass. In other words, the private equity groups will not be able to control voting, but will be a voice like everyone else.