Assess their risks, liquidity, investments, returns, timeframes and other terms
Invest in franchises
Invest in multimillion-dollar art shares
The minimum investment required on Mintus for art investment opportunities is $3,000, with investment amounts typically ranging from $15,000 to $100,000.
Investing in FranShares involves risks such as market volatility, economic changes, and franchise-specific challenges. Despite efforts to mitigate risks, there's no guarantee of returns, and FranShares' financial health could impact investments.
Investing in Mintus carries risks such as market volatility affecting art values, limited liquidity options until the secondary market launches, potential regulatory changes impacting investment practices, operational challenges, and the subjective nature of art valuation.
While liquidity isn't guaranteed, the platform is developing a secondary market for potential future liquidity opportunities.
Mintus plans to introduce a secondary market feature, which is currently marked as "coming soon". This future addition aims to enhance liquidity by allowing investors to sell their shares in artworks to other users, although it's not yet available.
FranShares' TNT Franchise Fund Inc., with 55 locations across major U.S. metros, historically generates returns of 20 to 28% EBITDA per location after 16-18 months.
Mintus targets an 8.9% annual growth rate for investments, though actual returns may vary due to market conditions and art performance.
Income portfolios target a 10-15 year hold; growth funds aim for a 5-7 year period before selling.
Investments through Mintus generally have a long-term horizon, often spanning several years, due to the nature of art appreciation and market trends. Exact duration may vary based on specific artworks and market conditions, with potential for earlier liquidity once the secondary market is introduced.
FranShares welcomes both accredited and non-accredited investors, focusing mainly on opportunities for non-accredited individuals. The platform also accepts international investors from many countries, depending on the specifics of each offering.
Mintus allows both individual investors and institutions to invest in artworks. Individual investors need to qualify as "high net worth individuals", "sophisticated investors", or "accredited investors" and pass an appropriateness assessment. Institutions like wealth managers and family offices should contact Mintus directly for specific investment options.
Franchise investments are subject to volatility due to economic shifts, industry trends, and franchise performance. While some franchises may be more resilient, values can fluctuate, posing a risk to investment value in adverse conditions.
The volatility of assets on Mintus, consisting of high-value artworks, is influenced by art market dynamics, economic factors, and the unique characteristics of each piece, such as rarity and provenance. These elements can cause fluctuations in art valuations, making them inherently volatile investments that require careful consideration.
FranShares employs SEC regulations A+, D, and CF for its investment offerings, creating structures with a main investment vehicle and subsidiaries for each franchise brand, possibly including locations or groups of locations.
Mintus is authorized and regulated by the Financial Conduct Authority (FCA) in the UK. This regulatory oversight ensures Mintus meets strict standards for investor protection, transparency, and market integrity, although specific audit details are not mentioned.
FranShares' insurance covers physical damages or losses to franchises but does not protect against market fluctuations, economic downturns, or fraud. Coverage limits may not fully reflect market values, meaning insurance does not eliminate all investment risks.
Details on insurance for artworks on Mintus are not explicitly mentioned. Typically, art investment platforms secure artworks against risks like damage or theft through insurance.
FranShares plans to distribute excess cash flow to investors 12 to 18 months after each offering closes, with distributions expected quarterly. The frequency can vary (quarterly, semi-annual, or annual) based on the specific offering.
Mintus does not offer traditional dividends. Instead, investors gain returns through the appreciation and eventual sale of the artworks, receiving profits based on their share ownership.
Investors in FranShares can receive their investment back through the sale of franchises, targeted within 5-15 years depending on the fund type. Upon sale, net proceeds are distributed to investors based on their fund ownership share.
Investors on Mintus receive their returns after the sale of an artwork, with profits made available in their wallet. They can then choose to withdraw these funds to a bank account or reinvest in other artworks on the platform.
FranShares charges a 1% to 3% annual management fee and possibly a performance fee, detailed in each offering's documents. No management fees are charged for the "TNT Franchise Inc." offering.
Fees on Mintus vary by artwork and investment structure, with all fees shown in advance in the Memorandum document available for each opportunity.
FranShares investors may owe capital gains taxes on profits from share sales and pay taxes on dividends, classified as ordinary or qualified based on holding periods and individual tax situations.
Mintus notes that artworks don't generate income while held, so tax implications mainly stem from capital gains upon sale.