American Opportunity Franchise Fund, I, LP

Project Description

LCR’s American Opportunity Franchise Fund, I, LP (the “Fund”) will make up to $12 million in senior loans to partially finance the construction, development and operations of up to 18 Dunkin’ Donuts restaurants, to be operated by franchise operators approved by Dunkin’ Donuts, within the greater New York metropolitan region.

Project Highlights include:

STRONG JOB CREATION:  QSR franchises are one of the highest job-creating industries in the U.S. According to an independent study by Dr. Michael Evans, the Fund is projected to create over 18.5 jobs per investor. Dr. Evans' job creation analysis demonstrates that the Fund’s construction and operations activity should create an estimated 446 jobs – 85% more than required by USCIS.

HIGH NEW RESTAURANT SUCCESS RATES: Dunkin' enjoys one of the most successful new store development rates in the U.S. with annual closure rates of less than 2%

LOWER RISK: Franchises operate under business models that have an multi-unit franchisees of strong franchise brands with long histories of operating success. LCR exclusively focuses on proven high-quality franchise brands who meet stringent underwriting criteria.

TOP QSR BRAND: Dunkin’ Brands (NASDAQ: DNKN) enjoys a 60+ year proven business model, has global revenues  of $7.7 billion USD and market capitalization of over $6 billion. Franchise Times named Dunkin’ the 16th largest global franchise brand in 2014 with sales growth twice as fast as Subway’s and Pizza Hut.

COFFEE LEADERSHIP:  According to a 2014 independent market study by IBISWORLD, on a U.S. national level, Starbucks and Dunkin’ Donuts control over 63% of the coffee market share [Starbucks = 37.7% and Dunkin' Brands = 25.5%., with the rest of the market only fragmented across a 36.8% market share. Contrary to the company’s name, the majority of store sales come from highly profitable beverages, with doughnuts only accounting for ~ 15% - 20% of a typical store’s sales. Dunkin’s dominant performance has fueld its rise to be ranked #11 in the 2015 Franchise 500 Rankings done yearly by Entrepreneur Magazine over other brands like McDonald’s, KFC and many others.