Kenny Rose (Founder @ FranShares) on alternative ways to build passive income

  • 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.