- Companies are spending tens of thousands of dollars finding the right franchisees. They mostly rely on brokers for this.
- Fundraising is a numbers game. Kenny reached out to 300 VCs and only got two calls.
- Franchising is regulated by the federal trade commission, so there is a lot of regulatory hurdles in order to get in.
- When creating new asset classes, playing nicely with regulators is a competitive advantage. Coinbase did this with crypto, and FranShares is doing this with franchises.
- Liquidity and fees are the main reason that people don’t like fractionalized ownership.
- The best way to build trust with an investor base is to only make money when they make money.