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.