The
National Post looks at the success of Smoke's Poutinerie; launched
in Toronto only 18 months ago the fast-food chain of poutine
restaurants is about to open its 10th franchise location.
"Anywhere where there are hungry university students, you will find Ryan Smolkin. "That's my feasibility," he says."
"The 36-year-old entrepreneur launched a fast-food chain of poutine
restaurants in Toronto 18 months ago and the growth has been
insatiable. "It just exploded on me," Mr. Smolkin says. "I was
immediately in expansion mode."
"He says the problem isn't finding an appetite for his product, rather
its finding money to fuel rapid expansion. Despite a track record as a
successful entrepreneur -- he's launched and sold several companies,
maintaining a spotless credit rating -- the big banks told him he was
growing too quickly for them."
"So, like a growing number of franchisors, he is turning to the private-equity market to seek growth capital."
"For the first time, I've started considering equity investment and
alternative sources of finance," he says, adding the offers have been
piling up. "I've been holding them back, but just in the last little
while ...it's good timing."
"Private-equity firms, while still not the primary source of financing
for franchise growth, are showing an increasing interest in
franchising: It's relatively stable, the model has been proven and
there is an opportunity for long-term cash flow."
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original source
National Post