Invest in franchises
Invest in a real estate fund
Investments
$100
The Roots Investment Community Fund allows investors to start with a minimum investment of $100.
High Risk
4/5
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.
Moderate Risk
3/5
Investing in the Roots Investment Community Fund carries risks including market fluctuations, economic changes, property-specific issues, and potential for financial loss.
Minimum Liquidity
1/5
While liquidity isn't guaranteed, the platform is developing a secondary market for potential future liquidity opportunities.
Minimum Liquidity
1/5
Investors in the Roots Investment Community Fund can cash out after the first year, with liquidity options available quarterly for added flexibility.
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Moderate Return
20 %
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.
High Return
16 %
Investors in the Roots Investment Community Fund can expect an annualized return of 16%.
Long-term Investment
5-15 years
Income portfolios target a 10-15 year hold; growth funds aim for a 5-7 year period before selling.
Short-term Investment
1 year
The recommended investment period for the Roots Investment Community Fund is at least a year, but liquidity is offered quarterly for investors needing flexibility.
Who can invest
International
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.
Who can invest
United States
The Roots Investment Community Fund is open to both non-accredited and accredited investors.
Moderate Volatility
3/5
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.
Moderate Volatility
3/5
Assets within the Roots Investment Community Fund may experience volatility due to economic conditions, interest rate changes, and local market dynamics. However, real estate typically shows less volatility than stocks, with rental income offering some stability.
Regulation and audits
SEC Regulated
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.
Regulation and audits
SEC Regulated
The Roots Investment Community Fund is regulated by the SEC, with an offering circular filed under Regulation A+.
Insurance
Yes
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.
Insurance
Yes
The Roots Investment Community Fund likely holds insurance to protect its assets, including property, liability, and loss of income insurance, safeguarding against damage, claims, and lost rental income.
Payouts
Dividends
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.
Payouts
Dividends
Investors receive quarterly distributions, which they can reinvest or cash out, offering flexibility in managing returns.
Withdrawals
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.
Withdrawals
Investors can cash out after the first year, with the Roots Investment Community Fund offering quarterly liquidity options.
Extra Fees
Yes
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.
Extra Fees
Yes
The platform charges a $5 transaction fee for the first investment and $3 for subsequent investments. A 6% fee applies if liquidating before one year; no fee after one year.
Taxes
Annual Statement
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.
Taxes
Annual Statement
As a REIT, the Roots Investment Community Fund passing profits to shareholders who can deduct up to 20% of dividend income as capital gains, with no cap or wage restrictions.