Some sad news from FranShares

According to an email from CEO Kenny Rose, they have made the difficult decision to wind down operations and will be closing at the end of the month after being unable to secure additional funding.

Kenny and the team have been working on this concept for more than a decade.

FranShares was was among the first platforms to create fractional franchise investing FranShares’ core idea was letting many investors buy small equity stakes in individual franchise locations (or portfolios of locations).

They launched their first deal under Regulation D, but later expanded to retail-access offerings through Regulation A. At the time they launched in 2021–2022, structures like this were extremely rare in franchising, making the model relatively unusual for the industry.

What does this mean for FranShares investors?

To be candid: We don’t know. I have emailed Kenny to find out more, and have not yet heard back.

I will continue to chase Kenny and , and I will pass along more information as I get it.