In a lively Growth Workshop at the 2026 Multi-Unit Franchising Conference, Susan Black-Beth, Alec Fogarty, and Blake Lantero unpack the realities of outside capital, growth partnerships, and what investors are really looking for.

For multi-unit franchisees, private equity can represent opportunity, optionality, and growth capital—but it can also raise big questions about control, culture, timing, and long-term goals. At the 2026 Multi-Unit Franchising Conference, Susan Black-Beth, founder of Auspicious Owl Group, led a practical and candid session designed to help operators better understand the private equity landscape and what it really means to pursue outside investment.

Black-Beth opened the session with an overview of how private equity and other forms of outside capital work in the franchise space, especially for multi-unit enterprises. She then moderated a conversation with Alec Fogarty of TSG Consumer Partners and Blake Lantero of Uncommon Equity, who shared how their firms evaluate opportunities, what they find compelling in franchising, and where founders and operators are often caught off guard during a transaction process.

Together, the discussion gave attendees a more grounded understanding of what private equity can offer—and what it requires in return.

Start with the reason, not the deal

Black-Beth began with what may have been the most important point of the session: before talking about capital, valuation, or deal structures, operators need to get clear on why they are considering a transaction in the first place.

That “why,” she explained, drives everything from the type of partner to pursue to the structure, timing, and post-close expectations. Is the goal to accelerate growth? Create liquidity? Plan for succession? Reduce risk? Step back from the day-to-day? Or bring in a partner who can help professionalize the business for its next stage?

She encouraged attendees to think practically and personally. What does life look like the day after a transaction? What happens to the leadership team? Does the owner want to remain deeply involved, or is the business moving toward an exit? Those answers shape the right path forward.

Just as important, Black-Beth urged operators to rethink the language around selling equity. Bringing in outside capital, she said, is not about “giving up” part of a company. It is a strategic decision to sell a portion of the business in pursuit of a specific objective—ideally to help the company grow faster, stronger, or with a better long-term partner.

Private equity is not one thing

A major theme of Black-Beth’s introduction was that “private equity” is often used too broadly. In reality, the landscape is much more nuanced.

She walked through several different forms of outside capital that owners may encounter, including traditional private equity, independent sponsors, family offices, strategics, search funds, and, in some cases, growth equity. Each type of investor comes with different expectations, different time horizons, different check sizes, and different ways of approaching a deal.

That distinction matters because the right fit depends on the size, stage, and condition of the business. Some investors are looking for majority ownership. Others will do minority deals. Some operate from committed funds, while others raise capital deal by deal. Some may want a shorter hold period, while others may be willing to stay invested much longer.

For operators considering outside capital, the lesson was clear: don’t treat all investment groups as interchangeable. The structure and source of capital can have a major impact on the partnership experience.

Selling equity does not always mean selling the whole company

Black-Beth also addressed one of the most common misconceptions founders have when they first explore outside investment: the assumption that bringing in capital means giving up total control or selling the whole business.

Instead, she explained that there are many possible structures. Some groups make minority investments. Others pursue majority recapitalizations. Others buy 100 percent of a company. The right structure depends on what the owner is trying to accomplish.

That led to one of the key concepts discussed during the session: the “second bite of the apple.” In a typical majority recapitalization, an owner may sell most of the business while retaining a meaningful minority stake. If the business grows and is sold again in the future, that retained stake may become significantly more valuable.

For many entrepreneurs, that structure can provide both liquidity today and continued upside tomorrow—while also aligning the founder and investor around future value creation.

What investors are looking for in multi-unit franchisees

Black-Beth’s overview then turned to what private equity firms are actually evaluating when they look at a multi-unit franchise enterprise.

Financial performance is only the beginning. Investors also want to understand leadership depth, operating discipline, unit-level economics, expansion opportunities, legal exposure, and the strength of the relationship with the franchisor. She also pointed to “key person risk” as an important factor—whether too much of the business depends on one individual.

That broader lens matters. Investors are not just buying a collection of units. They are assessing whether the business has the systems, team, and growth potential to scale beyond its current form.

Fogarty and Lantero reinforced that point during the Q&A. When asked what makes franchising attractive, both pointed to the combination of strong operating models, repeatable systems, and the ability to grow efficiently when the operator and brand are well aligned.

Lantero noted that multi-unit businesses often benefit from real operating leverage as they scale, while Fogarty emphasized the strength of the franchise model when it is built around a compelling consumer brand and a strong operator.

Both also stressed that a franchisee’s relationship with the franchisor matters. A good operator in a weak or strained brand relationship creates more risk. A strong operator working within a healthy system creates more confidence in the growth story.

The “ideal” deal is usually founder-led and growth-oriented

When Black-Beth asked each panelist to describe the kind of deal that gets their firm excited, both answers had a few common threads.

The most attractive opportunities are often founder-led businesses with strong unit economics, a credible path for expansion, and leadership teams willing to stay invested and grow the business alongside the investor. Both panelists also noted the appeal of being the first institutional capital into a company.

For Fogarty, that includes businesses with a strong foundation, real growth levers, and a management team that wants to continue building. For Lantero, the ideal investment is often a founder-owned company where the investor purchases a majority stake, the founder rolls over meaningful equity, and both parties remain aligned around future growth and that eventual second exit.

That alignment matters because private equity firms are not just evaluating what a business has done. They are underwriting what the business can become over the next several years.

Not every good deal is perfect

The panel also acknowledged that strong deals are not always spotless. Some have “hair on them”—a phrase both investors used to describe businesses with challenges or imperfections that still may be highly investable.

Lantero said his firm often prefers situations where a deal has some complexity, especially if the issues are fixable and the business can be structured properly. Fogarty made an important distinction: some issues are manageable, while others go to the foundation of the business. A few underperforming units may be understandable. A broken market or flawed business model is much harder to overlook.

What matters most, both suggested, is whether the operator understands the issues, has learned from them, and can articulate a credible plan moving forward.

Diligence is intense—and usually longer than founders expect

One of the strongest themes from both Black-Beth’s overview and the panel discussion was the reality of diligence.

Black-Beth described the process as invasive, time-consuming, and often uncomfortable. Investors will ask hard questions, request extensive documentation, and closely examine everything from the financials to legal exposure to systems, leadership, and long-term growth assumptions.

She advised operators to build the right team before entering the process, including experienced M&A counsel, strong accounting support, and often an investment banker who can help drive price, timing, and process. She also noted the value of an advisor who can help an owner think through the emotional and strategic dimensions of a deal before going to market.

Both panelists added that many founders underestimate how long deals take today. Even after signing a letter of intent, transactions can drag on due to financing conditions, diligence complexity, and broader market uncertainty. Patience, preparation, and realistic expectations are essential.

What changes after the deal closes

Black-Beth closed her presentation with an important reminder: even when private equity firms say they are there to support the business, things do change after a transaction.

Reporting becomes more rigorous. Governance becomes more formal. Decision-making often shifts from the dinner table to the boardroom. A company may need more structure, more discipline, and more accountability than it had before the deal.

She also underscored the need to be intentional about culture. If the values and culture of the business matter to the owner, they need to be protected on purpose. Investors may care about those things, but they are also pursuing returns on behalf of their own stakeholders. Alignment around people, culture, and operating philosophy cannot simply be assumed.

That point may have been one of the session’s most valuable takeaways. The best deals are not just about price. They are about fit, clarity, and entering the partnership with open eyes.

A more informed path to growth

The value of the session was not in presenting private equity as the answer for every operator. It was in making the options more understandable.

Black-Beth, Fogarty, and Lantero gave attendees a useful framework for thinking about outside capital: start with the objective, understand the range of capital sources available, know what investors are looking for, and prepare both the business and the leadership team well before a transaction is on the horizon.

For multi-unit franchisees, private equity may create a path to faster growth, stronger infrastructure, liquidity, or eventual exit. But the session made clear that the best outcomes come when owners approach the process with clarity, discipline, and a strong understanding of what partnership will really mean on the other side of the deal.

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