CapitalSpring Review: Restaurant & Franchise Private Equity Investment Focus

In-depth review of CapitalSpring: their restaurant and franchise investment thesis, portfolio companies, typical deal sizes, and how to prepare for investment.

Key Takeaways

  • •Focus on Restaurant and Franchise multi-unit operators
  • •Investment range: $10M-$150M in debt and equity
  • •Based in Nashville, TN since 2005
  • •Deployed ~$4B across 3,000-4,000 restaurants
  • •Provides both debt and equity capital

Portfolio Companies & Investment Activity

CapitalSpring has invested approximately $4 billion across 3,000-4,000 restaurant locations since 2005. The firm is a sector-focused private equity and debt investment firm specializing in multi-unit food service and restaurant franchising.

Key portfolio companies and transactions include: Sizzling Platter (Little Caesars, Wingstop, Jamba) - sold to Bain Capital in 2025 for ~$1B in a deal named Franchise Times Deal of the Year; Alloy Personal Training (fitness franchise); Crunch Holdings (fitness franchise with 13 Crunch Fitness clubs in NY/NJ); and various other restaurant franchise platforms.

CapitalSpring typically invests $10M-$150M per transaction, providing acquisition financing, growth capital, and recapitalization solutions for multi-unit franchisees and restaurant operators.

Pro Tip

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.

  • PE firms like CapitalSpring expect detailed financial information specific to restaurant and franchise businesses: Restaurant Metrics
  • Same-store sales trends
  • Unit-level EBITDA [profitability analysis](/blog/outsourced-controller)
  • 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

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.

Pro Tip

Prepare detailed financial projections and operational metrics before initial meetings.

Frequently Asked Questions

What industries does CapitalSpring focus on?

CapitalSpring focuses on Restaurant and Franchise businesses. The firm seeks operators with proven unit economics and multi-unit expansion potential.

What size companies does CapitalSpring acquire?

CapitalSpring typically invests $25M-$100M in equity, targeting restaurant and franchise companies with established unit counts.

What is CapitalSpring's typical investment size?

The firm's equity investments generally range from $25M-$100M, positioning them as active investors in the restaurant franchise space.

How long does CapitalSpring's due diligence process take?

Due diligence timelines vary by deal complexity, but CapitalSpring typically conducts thorough financial, operational, and brand due diligence over several weeks to months.

What should I prepare before engaging with CapitalSpring?

Prepare three years of audited financials, detailed unit economics, brand performance data, expansion pipeline, and management team bios.

How does CapitalSpring work with portfolio companies?

CapitalSpring takes a partnership approach, providing both debt and equity capital while working closely with management teams on growth initiatives.

Ready to Connect With Capitalspring?

Prepare your business for private equity investment with expert financial guidance. Our fractional CFO team helps you build the financial infrastructure PE firms expect.

Learn More

This article is part of our Private equity firms | Eagle Rock CFO guide.