Franchise backer's £0.4m float
Article Date: Jul 06 2005The bosses of OFEX-traded cleaning services group Myhome International intend to raise £400,000 for a new OFEX venture, Franchise Investment Strategies, to back franchise networks.
Simon McNeill-Ritchie and Russell O'Connell, respectively chairman and chief executive officer of fast-growing Myhome, hope to raise the money with the help of OFEX adviser St Helen's Capital at 4p a share, valuing Franchise Investment at £1.5 million. The intention is to put between £50,000 and £100,000 a time, taking 30 to 50 per cent of franchisor companies with networks of franchisees.
The new company will not invest in franchisees, but intends to offer advice to franchisors and help in expanding their networks, a well as putting in cash. Encouraged by industry statistics on both sides of the Atlantic suggesting franchising generates much faster growth with a much lower commercial failure rate than organic development, Franchise Investment will seek profitable exits through flotations and other deals.
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