Nationwide Franchise Securitization Financings

Engaging in the successful securitization financing for a franchisor and its affiliates can be a most complex endeavor requiring a particularly sophisticated skill set to enable the franchisor to take advantage of the markedly lower finance costs (versus conventional bank financing) associated with this type of financing transaction.

No successful securitization of a franchisor’s royalty stream had ever been achieved until 2000, when Kaufmann Gildin & Robbins – working with one of the nation’s most prestigious law firms – quite literally conceived the structural template underlying the nation’s first ever successful franchisor securitization.

We are proud to note that every subsequent franchisor securitization financing has followed the template we established (sometimes with minor variations) and that we have been involved in many of them, serving as counsel to the securitizing franchisor; its investment banker; or, the insurer of the securitization notes).

Our lawyers at Kaufmann Gildin & Robbins have proven integral to the following multimillion and multibillion dollar securitization transactions, among others:

  • The Blackstone Group/Hilton Hotels Corporation
  • Dunkin Brands, Inc.
  • Taco Bell Corp.
  • Wendy’s International, Inc.
  • Sonic Corporation
  • Arby’s, Inc.
  • Domino’s Pizza LLC
  • IHOP Franchising, LLC

In each of these transactions, our team’s skill, expertise and knowledge resulted in seamless transactions which yielded myriad benefits to the franchisors in question while minimizing the distractions that securitization financings can sometimes engender.

As with all other aspects of our team’s service, every effort is undertaken to minimize the fees associated with securitization activities. We know the enormous pressure that corporate counsel is under to keep their budgets in line and to minimize outside counsel fees. And we make every effort to help them do just that.