Investment Focus & Thesis

CapitalSpring specializes in providing flexible capital solutions to restaurant and franchise businesses. Their investment thesis centers on partnering with proven management teams: Investment Range Investments typically ranging from $10 million to $150 million or more across debt and equity for established restaurant and franchise companies. Capital Solutions Senior debt, mezzanine, preferred equity, and private equity - providing complete capital structure flexibility. Restaurant franchisees — Multi-unit franchise operators across major brands Franchisors — Emerging and established franchise concepts seeking growth capital Full-service restaurants — Branded restaurant groups with proven concepts Quick-service restaurants — Fast casual and quick-service concepts Foodservice distribution — Related foodservice supply chain businesses

Investment Criteria

CapitalSpring evaluates franchise and restaurant opportunities based on several key criteria: Proven operators — Management teams with demonstrated track record in restaurant operations Established brands — Relationships with major franchise brands or proprietary concepts with strong unit economics Multi-unit focus — Platform companies with existing unit count and expansion potential Financial performance — Strong same-store sales trends and EBITDA generation Growth pipeline — Clear plans for unit expansion or acquisition }> Pro Tip CapitalSpring is unique in that they provide both debt and equity capital, making them a true "one-stop" capital source. They have deep relationships with major franchise brands and can structure transactions that include acquisition financing, growth capital, and equity participation.

Transaction Types

CapitalSpring supports various transaction scenarios across the franchise lifecycle: 1 Acquisition Financing Platform business acquisitions or add-on acquisitions for existing franchisees looking to expand their footprint. 2 Management Buyouts Partnering with management teams for ownership transitions and recapitalizations. 3 Growth Capital Scaling established businesses through new unit development, geographic expansion, or brand acquisitions. 4 Recapitalizations Partner redemptions, management buyouts, and owner liquidity events while maintaining growth capital.

How to Connect With CapitalSpring

Approaching CapitalSpring requires demonstrating operational excellence and clear growth plans: 1 Demonstrate Operating Excellence Show strong unit-level economics, positive same-store sales trends, and operational metrics that exceed brand averages. 2 Present Clear Growth Pipeline Prepare detailed expansion plans showing new unit development pipeline, geographic priorities, and acquisition targets. 3 Show Brand Relationships Demonstrate strong relationships with major franchise brands and proven ability to execute under franchise agreements. 4 Prepare Capital Structure Options CapitalSpring provides both debt and equity - be prepared to discuss your capital needs and structure preferences.

The Value of Financial Preparedness

PE firms like CapitalSpring expect detailed financial information specific to restaurant and franchise businesses: Restaurant Metrics • Same-store sales trends • Unit-level EBITDA • Average check and ticket count • Labor and food cost percentages Operational Data • Development pipeline by location • Brand performance rankings • Lease and real estate terms • Management team depth }> How Eagle Rock Helps We help restaurant and franchise companies prepare for PE investment by building detailed financial models, unit-level reporting, and growth projections. Our fractional CFO services ensure your company is ready for restaurant-focused due diligence.

Frequently Asked Questions