SMB Franchise Advisors is entering a new stage of growth following a strategic minority investment from principals of Navigator Partners, a partnership designed to expand the franchise consultancy’s platform of services for emerging and established franchisors.
The Doylestown, Pennsylvania-based firm announced the investment on September 14th. SMB’s existing leadership team will remain in place and continue overseeing strategic decisions and day-to-day operations.
The transaction also creates a new Board of Directors that brings together leaders from both organizations. The board will include SMB Franchise Advisors Founder and CEO Steve Beagelman and Chief Growth Officer Brian Luciani, along with Navigator Partners Managing Partners Bernard B. Markey and William Stewart.
SMB Franchise Advisors Builds on Longstanding Navigator Relationship
The investment formalizes a business relationship that stretches back roughly a decade.
SMB Franchise Advisors and Navigator Partners first worked together in 2016, when SMB brought Navigator into an investment involving K9 Resorts Luxury Pet Hotels. Since then, Navigator has co-invested with Stadium Ventures, SMB’s investment division, in several SMB client brands, including Almera Tech Services, Pure Sweat Studios and Story Time Chess.
That history helped establish the foundation for the new partnership, which combines SMB’s work with founders and developing franchise systems with Navigator’s investment capital and experience supporting franchise growth.
“We have worked closely with Navigator for over a decade, the better part of SMB’s existence, to support select franchise brands in the ways we each do best, and in that time we’ve built a partnership grounded in common values and genuine mutual respect,” said Steve Beagelman, Founder and CEO at SMB Franchise Advisors. “With this investment, we will continue to do what we’ve always done – providing the best possible service to help our clients grow through franchising – now with the capital and expertise to scale and broaden our offerings while serving a growing pipeline of emerging and maturing brands.”
Founded in 2009, SMB Franchise Advisors works with business owners preparing to franchise as well as established franchisors seeking to refine their systems and pursue additional growth. The company says it has worked with more than 600 companies and has a team of more than 20 subject matter experts covering areas such as finance, operations, marketing and franchise development. Beagelman and Luciani also operate Stadium Ventures, which takes equity positions in select franchise brands that work with SMB.
New Board to Help Guide SMB’s Next Phase
The newly formed board gives Navigator Partners’ Markey and Stewart formal roles in helping identify and support potential growth opportunities for SMB.
Navigator focuses on investments in emerging franchisors and uses its own capital, an approach the firm says allows it to take a long-term investment view. Markey and Stewart also bring direct franchisor operating experience to the partnership.
“We’ve seen firsthand what SMB’s team is capable of, and we’ve always shared values and believed in the mission behind their work,” said Bernard Markey, Co-Founder and Managing Partner at Navigator Partners. “Bill and I are thrilled to join the board, giving us an opportunity to contribute what we’ve learned building franchise systems together and serve founders for years to come.”
Markey and Stewart co-founded the FirstLight HomeCare senior care franchise system in late 2009. According to the announcement, FirstLight has grown to more than 170 franchise owners operating approximately 320 territories, with system revenues of approximately $375 million.
The Navigator managing partners also hold investments in franchise companies including Almera Tech Services, Another Nine, K9 Resorts, Picklr, Pure Sweat Studios, Scenthound, Storytime Chess and SURV. They serve in board or advisory roles with several of those businesses.
Investment Targets Franchisee Support and Expanded Services
A central focus of the partnership will be strengthening the resources SMB can provide as franchise systems develop.
“Importantly, we are all aligned on and work towards the mission that franchisors need to provide strong support to ensure their franchisees’ success,” said William Stewart, Managing Partner at Navigator Partners. “We are glad that this investment will be used to build great franchisee support infrastructure to responsibly drive franchise system growth.”
For SMB, the additional capital comes as the consultancy continues to work with companies at multiple stages of the franchise lifecycle. Its services range from helping business owners determine how to structure and launch a franchise program to advising existing franchisors on operations, marketing, development and growth strategies.
SMB also remains active within the International Franchise Association. Members of the company serve on the IFA Membership Committee, Supplier Forum Advisory Board, Women’s Franchise Committee and the IFA Foundation.
The Navigator principals were represented by Fox Rothschild LLP in the transaction. SMB Franchise Advisors was represented by Taft Stettinius & Hollister LLP.
SMB said it continues to accept new clients, including business owners exploring franchising for the first time and existing franchise companies seeking an analysis of their systems and opportunities for expansion.
