Investors

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Borrowers

Get fast, efficient financing for your franchise business

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Franchisors

Connect your franchisees with a new source of capital

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Earn attractive fixed income returns

Invest in loans to highly-qualified franchise businesses.

 

ApplePie provides curated franchise debt opportunities to fixed income investors.

This previously inaccessible asset class features loans to small businesses supported by proven franchise brands with performance history across dozens or even hundreds of units that can be used to better assess risk. Our marketplace enables franchise businesses to access capital more efficiently, and unlocks this diverse asset class for qualified investors to fuel economic growth and jobs in local communities.

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Why invest with ApplePie?

Attractive return potential

Earn targeted returns of 7-12% with monthly payments of principal and interest*

 

Reduced Risk

Franchise businesses benefit from proven operating models and support from the brand.

 

Diversification

Build a portfolio diversified across loan types, brands, sectors, geographies and more.

 

Monthly cash flows

Invest online in just minutes and receive payments directly to your bank account.

 

* Before investor servicing fee or potential loan losses.

Why we franchises

A franchise is not just any small business. It’s a business in a box, leveraging the blueprint of a franchise brand to replicate success. ApplePie focuses exclusively on franchises because from an investment perspective, they offer many advantages over ordinary small businesses.

Proven business models

Franchises enjoy high success rates because they use well-established models and ongoing operational support from the brand.

Recession resilient

Franchisees have better support systems to weather a downturn, and many franchise business segments are counter-cyclical.

Franchisor diligence

Brands have a vested interest in the business’ success, providing an extra layer of diligence on operator and location selection.

Strong segment growth

Franchise industry growth outpaces other small business and the US economy as a whole*

*Source: Franchise Business Economic Outlook, International Franchise Association, 2015

Quality loan characteristics

ApplePie partners directly with established franchise brands to develop unique financing solutions for their franchisees. Our multi-factor underwriting model targets high quality loans from highly-qualified borrowers and brands.

We evaluate multiple aspects of the business and the use of loan proceeds. Among the factors we examine are the operator’s experience and asset coverage, as well as the business’ history, cash flows, and location.

As of March 31, 2016, our franchise business loan portfolio had the following characteristics:

Loan Characteristics
Average loan size$419,068
Term68.7 months
Interest rate8.61%
Borrower equity (new units)28.9%
Business Borrower Characteristics
Debt to income24.9%
Asset coverage ratio12.5x
Debt service coverage ratio2.1x
FICO758

*All calculations are dollar weighted

Different ways to invest

Marketplace

Actively invest in fractional shares of loans on our marketplace, with investment minimums of only $2,500.

Automated Investing

Invest in all loans on our marketplace automatically. Enjoy lower investment minimums of $1,000 per loan.

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Whole Loans

For institutions, invest in whole loans based on pre-agreed criteria.

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Sign up now to invest in loans on our marketplace and learn more about Automated Investing.

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Whitepaper
The Investment Thesis For Franchise Debt

Our white paper, Why Franchise Debt Belongs in Your Portfolio, articulates the reasons to invest in franchise debt. It explains the potential returns investors can earn, and why investing in franchise businesses may entail less risk than investing in other small businesses.

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Frequently Asked Questions

Why invest in franchise businesses?
Why invest in franchise loans on ApplePie Capital’s marketplace?
What are the fees for investors?
What is the structure of the investments?
Who can invest on ApplePie Capital?
Can I invest through an LLC, C-Corp, or LP?
Can I invest using funds from my retirement account?
What happens if the franchise is delinquent on their payments or goes out of business?