In a new QSR Magazine story on the nuances of unit economics, BIP Capital’s Tom Wells shared the importance of the bottom line versus just a unique concept alone. The story highlights how Wells sees the most important factor as whether franchisees are thriving or not.
“What does it cost someone to open a new location all in, and how quickly are they able to make back that cost? We try to look for concepts that have a potential for a three-year or better payback. Ultimately, BIP Capital asks if franchisees make money and if those profits are compelling them to open new locations. If the franchisees do well financially, the brand will be fine,” Wells shared with QSR.
Read more in QSR