Looking for franchise validation from your existing owners is generally a good idea.
But, this franchise sales development program by DQ strikes me as a bit lazy -- can't they do any prospecting on their own?
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GE Capital, Franchise Finance has provided a $26.5 million credit facility to Frauenshuh Hospitality Group, a major Dairy Queen® franchisee. The facility includes a $24 million term loan and a $2.5 million development line of credit, and will be used to finance the acquisition of 58 additional Dairy Queen units. A portion of the funding was provided through GE Capital’s bank affiliate, GE Capital Financial Inc.
“We really appreciate that GE Capital was able to close this complex transaction on time and on budget,” said Matthew Frauenshuh, CEO, Frauenshuh Hospitality Group. “Our relationship with GE Capital will be important to us as we continue to grow.”
Frauenshuh currently operates 61 Dairy Queen units, under the name Fourteen Foods, located in the upper-Midwest, with locations in Minnesota, Iowa, Wisconsin, Nebraska, and South Dakota. With this funding, the Frauenshuh family is acquiring 58 additional Dairy Queen units in Kentucky and Indiana, making them the largest Dairy Queen franchisee.
“We are excited to work with Frauenshuh Hospitality,” said Paul Cantieri, senior vice president, GE Capital, Franchise Finance. “Their passion for the business and desire to grow will create lots of opportunities to work together in the years ahead.”
Dairy Queen® restaurants are independently owned and operated franchise locations. With more than 5,700 units in 19 countries, Dairy Queen is one of the largest soft serve franchises in the world.
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