There's a saying in the capital finance industry that goes something like "the only companies that qualify for financing are the ones that don't need it" and it's not much different in the franchise financing world because certain requirements and qualifications must still be met however the team at Apple Pie Capital is becoming a leader in this market. They current work with more than 60 brands and their franchisees to provide alternative financing options from $100,000 to $20 million. To this into perspective the annual capital demands for franchise financing is greater than $30 billion so clearly this a massive opportunity. Apple Pie Capital spends the time and resources needed to build strong relationships with the brands to help them better grasp the risks, the upside, the unit economics, the challenges, the marketing strategy, the best locations and everything else that goes into business planning for franchisees. Apple Pie continues to service all loans they make however they do sell some of them off to hedge funds, private family offices, banks, high net worth investors and other alternative lending companies. Apple Pie is headquartered in San Francisco, has 42 employees and has raised $26 million from investors.
In this interview I spoke with Denise about her motivation behind starting Apple Pie Capital, what does the company do, what types of brands do they work with, what industries are they focused on, where did the company name came from, what is her prior business experience that led to the formation of this company, when and why did they raise their first round of outside capital, what was their fundraising strategy for the additional rounds, what makes them different than more traditional lenders like the big banks, what have been the biggest challenges over the last 3 years, are their any mistakes or missteps she can tell us about, what is she the most proud of, what has been her hiring strategy, why did she hire one of her kids to work for the company, what advice does she have for someone starting a franchise and much more.
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