FI Partners

Overview | Investment Focus | Investments | The Team | Contact

Franchise Investment (FI) Partners is an entrepreneurial private equity firm focused on investing in and helping grow Canadian businesses

Overview

Based in Toronto, Canada, FI Partners is an entrepreneurial private equity firm focused on investing in and helping grow Canadian businesses. FI Partners can also provide a succession plan for business owners who are looking to take a step back or even retire from their business. While FI Partners will invest in any industry, we have an expertise in franchise and location-based businesses.

Learn about our approach and why we are different:

Our Approach
Why We're Different

Our Approach

1
Find high-quality Canadian franchise or location-based businesses that have the potential to become National concepts or brands.

2
Purchase an equity stake in the business in order to become financially aligned with ownership. This equity stake can range from 20 to 100% of the business depending on the situation.

3
Raise and invest additional capital if necessary through bank financing or further equity investment. We have extremely good relationships with the Canadian banks.

4
Roll up our sleeves and assist the management team with strategic execution including: executing the growth plan, professionalizing the business, putting better systems in place, and optimizing profitability.

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Why We’re Different

In addition to targeting smaller companies, FI Partners differs from traditional Canadian private equity firms in a number of important ways:

We’re focused on franchise and location-based businesses. FI Partners has significant experience investing in and operating these unique business models.

We invest personally. FI Partners principals and advisors invest their personal net worth in each transaction. This ensures that we are completely aligned with the owners of the business.

We supplement the management team.  We look to partner with existing management teams, not replace them. In particular, we can help strengthen a Company’s finance and administrative departments as well as lead acquisition and growth initiatives.

We are long-term investors. FI Partners is not required to exit investments after a set amount of time. This allows us to take a much longer term view (10+ years) when it comes to managing our investments.

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Investment Focus

FI Partners is actively looking to acquire minority or controlling stakes in high-quality Canadian businesses with a preference for franchise or location-based concepts. We are primarily focused on businesses that are headquartered in Ontario but we can invest anywhere in Canada.

Our investment model centers around the following general criteria:

business

BUSINESS

Sustainable competitive advantage
Recurring revenue model
Good management track record
Opportunities for future growth

business

INDUSTRY

Growing and stable market
Below-average cyclicality
Low to medium competitive intensity
Low technological risk

business

FINANCIAL

Up to $50 million in annual revenue
Up to $5 million in annual cash flow
History of profitability
Strong cash flow generation
Stable top line

business

SITUATION

Businesses that require capital for growth and/or other initiatives
Businesses that require assistance executing their growth/strategic plan
Owners looking to reduce daily operational involvement / succession planning
Owners looking to diversify their net worth

Industry Focus

While FI Partners will invest in any industry, we have an expertise in franchise or location-based businesses. We specifically target these business models and as a result, are attracted to the following industries:

Franchisor Criteria

FI Partners believes that a successful franchisor’s top priority should be the success and financial health of its franchisees. This may seem obvious, but we’ve encountered many situations where the franchisor focuses on its own profit at the expense of its franchisees. These scenarios are never sustainable and eventually result in financial distress. 

Happy Franchisees = Happy Franchisor

A successful franchise or location-based model starts with the right type of business. Not every business works well as a franchise concept. Important criteria include:

Makes Sense for the Franchisor but what about the Franchisee?

A lot of franchise concepts require franchisees to dedicate a substantial amount of their time to the business. If this is the case, a franchisee should be able to earn a return on their investment AFTER accounting for an appropriate wage for their time. Many franchise models only generate enough profit to pay the franchisee a wage; these models will never succeed over the long term. A good way to ensure that both a wage and return can be earned is by reducing the upfront cost of the franchise.

Investments

FI Partners and Ashbridge Partners acquired Caryl Baker Visage (“CBV”) in 2013. CBV is a location-based, franchisor with 32 franchise locations in Canada (and growing).

CBV is a unique and original concept that specializes in everything from the neck up. From eyebrow waxing, lash extensions, advanced facials, to complete makeovers, CBV has been a trusted expert in Canadian beauty for over 45 years. With 32 locations offering over 300 exclusive private label skin care and cosmetic products, and exclusive facial services and treatments, CBV has everything to help clients put their best face forward!

Learn More!

FI Partners partnered with Scholar’s Education Centre Inc. (“SEC”) in 2017. SEC is a location-based, franchisor with 20 franchise locations in Canada (and growing).

For over 15 years, SEC has been providing families with an affordable, professional, and comfortable learning environment that fosters lifelong growth for students in education, self-confidence, self-esteem, and socialization. We believe in developing long-term partnerships within our local communities and with families.

The SEC approach to learning is based on long-term mentorship. Although tutoring is one component involved in educational development, we feel mentoring a student in the areas of goal setting, time management, academic success, and building confidence goes beyond the scope of just tutoring. Having qualified teachers trained in mentorship and providing more than just tutoring is what has allowed us to provide success to thousands of families for over a decade.

The curriculum used at SEC is proprietary and was designed and developed by Certified Teachers to meet the Canadian and Provincial academic standards. Our curriculum is continuously being updated by Board-Certified Teachers to meet provincial and national standards. The result of developing our own curriculum that matches provincial and Canadian standards is simple – we are confident that we provide the academic resources that your child is learning in the classroom. We’re more than just tutoring; we feel our academic and mentorship system is a leading factor in producing Real Life Results for families and students.

Learn More!

The Team

Justin Dumitrescu

Partner

Mr. Dumitrescu is a Partner at FI Partners. He is also President at Caryl Baker Visage where he helps execute the growth plan alongside the management team in addition to managing the creative department and brand activities... Continue Reading...

Adam Breslin

Advisor

Michael Clabby

Advisor

Mickey Lungu

Advisor