News & Press
ApplePie Capital is bringing investors to the franchise lending business.
The San Francisco-based startup officially launched this week a marketplace-lending program for franchises. Since its soft launch in November, it has already generated $25 million in loan demand from franchises, including those with restaurants like Einstein Bros. Bagels and Marco’s Pizza.
Marketplace lending is similar to crowdfunding, or crowd lending, in that it gives investors the opportunity to participate in a loan to an organization — in this instance, franchise businesses.
The difference is that marketplace lenders like ApplePie guarantee funding to the franchisee and then give qualified investors the opportunity to participate in those loans.
Company Closes First Franchise Loan, Receives Over $25 Million In Capital Demand During Soft Launch, Partners With Phenix Salon Suites
San Francisco, February 11, 2015 – ApplePie Capital, the first marketplace lender solely dedicated to the franchise industry, today announced the official launch of its franchise loan marketplace, which connects franchise entrepreneurs looking for capital with qualified investors seeking attractive fixed-income returns.
The company also announced that it closed its first franchise loan, and said it has received over $25 million in capital demand from franchise entrepreneurs since its soft-launch in November. The firm announced that there are now seven franchise brands participating in the marketplace. The latest brand to join is Phenix Salon Suites. ApplePie Capital expects to announce several more brand partnerships in the coming months.
ApplePie Capital is a new marketplace lender that focuses on lending $100,000 to $1 million to franchisees of selected companies or "brands" that have partnered with the San Francisco company.
Most marketplace lenders focus on small business loans under $1 million that traditional bankers find difficult to make, especially doing so quickly.
ApplePie CEO Denise Thomas says the company plans to extend small business loans in under 30 days. The firm, which has a strong pipeline, hasn't yet closed its first loan. But Apple Pie plans to have everything in place next month so accredited investors can participate in its loans to franchisees.
After launching the first online securities auction 14 years ago, Denise Thomas and co-founder Steve Pelletier started watching the recent growth in peer lending and decided that they could provide a more efficient way for small businesses to access capital.
The company presents another model in the fast-growing p2p space, one that is offering lower rates on small business loans due to lower relative risk in the franchise model and a proprietary credit model built on years of industry experience.
Many risk-averse investors seek out the stability of big, recession-proof brands… Brands like McDonald’s (NYSE: MCD) or Burger King (NYSE: BKW). These stocks may help you sleep at night, but they sure don’t offer much yield. Dividends from Burger King are less than 1% and “high-yielding” McDonald’s offers just 3.5%.
But what if you could invest in recession-proof brands like these and earn yields of 8% to 12% instead? You can…
There's a new franchise funding alternative in town: ApplePie Capital, which announced its presence as a franchise lender and unveiled its website last week. The idea behind the company is to provide a franchise loan marketplace that connects franchisees in need of capital with investors seeking fixed-income returns, in this case by investing in operators of proven franchise brands. The marketplace will launch in Q1 2015 and offer loans ranging from $100,000 to $1 million.
ApplePie will work exclusively with franchises, says co-founder and CEO Denise Thomas. The company's founding brands are Marco's Pizza, Fast-Fix Jewelry and Watch Repairs, Nothing Bundt Cakes, AdvantaClean, Sola Salon Studios, and RNR Custom Wheels and Tire Express.
San Francisco based ApplePie Capital is preparing to launch a “first-ever” franchise loan marketplace that will connect franchise brands and their entrepreneurs with investors seeking fixed income returns. ApplePie was launched in 2013 and raised funding earlier in 2014 in the amount of $3.77 million from Freestyle Capital, QED Investors, Signia Venture Partners and more.
ApplePie Capital seeks to bridge the financing gap for qualified entrepreneurs who wish to open or expand their franchise business by matching investors to franchisees. ApplePie wants to use the power of P2P lending to “democratize” access to capital.
In an era where small business lending is taking flight, with Lending Club and OnDeck now on the verge of IPOs, one startup is entering the market with a new focus; ApplePie Capital has announced that it is launching a lending marketplace for franchise businesses, the first of its kind.
The San Francisco-based service aims to make it easier for entrepreneurs to open up a franchise, like one at Subway or Burger King. Instead of waiting months to secure lending, ApplePie aims to help franchise owners expedite the process.
During the go-go ‘90s, an innovative company called OffRoad Capital emerged on the scene, pairing accredited investors with startups seeking funding via its online platform. A kind of AngelList 1.0, even OffRoad itself was backed by $17 million from roughly 150 accredited investors. Its timing was lousy, though. Just as OffRoad began gaining real momentum, the tech market nosedived, and in 2001, the company was quietly acquired for an undisclosed amount.
But the band is back together. A year ago, in fact, OffRoad founder Stephen Pelletier and former OffRoad executive VP Denise Thomas rejoined forces to create ApplePie Capital, a San Francisco-based online loan business focused on franchise financing.
ApplePie Capital Announces First-Ever Loan Marketplace to Connect Investors with Franchise Businesses
$3.77 Million Round in ApplePie Capital led by Freestyle Capital, QED Investors, and Signia Venture Partners
San Francisco, CA, November 11, 2014 – ApplePie Capital today announced the first-ever franchise loan marketplace that will connect high-quality franchise brands and their entrepreneurs with investors seeking attractive fixed income returns. As the first marketplace lender solely dedicated to the franchise industry, ApplePie Capital will bridge the financing gap for thousands of qualified entrepreneurs who wish to open or expand their franchise business. This will democratize access to capital to help propel entrepreneurship, support proven Main Street businesses, and create jobs throughout the country. Entrepreneurs can invite their families, friends, and communities to invest in their franchise businesses alongside ApplePie Capital’s growing network of individual and institutional investors.