ApplePie Capital Enters into $180 Million Loan Purchase Agreement

Dec 12, 2016

New investments will fuel ApplePie’s growth and its transformation of franchise finance

San Francisco, December 12, 2016ApplePie Capital, the first online lender solely dedicated to the franchise industry, today announced that it has entered into a $180 million loan purchase agreement with TowerBrook Capital Partners L.P. (TowerBrook) to purchase franchise loans originated by ApplePie over a two-year period. Funding will come from TowerBrook’s Structured Opportunities Fund and a credit facility provided by SunTrust Banks, Inc. (NYSE: STI). The TowerBrook relationship will enable ApplePie to further strengthen its position as a leading provider of innovative growth financing for the franchise industry.

ApplePie simultaneously announced a $16.5 million Series B round, co-led by QED Investors and Fifth Third Capital, the direct equity investment subsidiary of Fifth Third Bancorp. QED Investors follows its previous investments in ApplePie’s Seed and Series A rounds, while Fifth Third Capital is expected to add significant strategic value and open up new opportunities for growth.  Previous investors participating in the Series B include Signia Venture Partners, Freestyle Capital, and Prosper president Ron Suber. Also participating in the round is Colchis Capital Management, L.P., a prominent investor in the online lending space.

“At our core, we are a growth delivery system for the franchise industry,” said Denise Thomas, ApplePie CEO and co-founder. “We unlock value for our franchise brand partners by providing capital to their franchisees, which helps brands grow.”  Thomas continued, “The investments announced today will allow us to scale and dramatically advance our mission of transforming franchise finance, while providing TowerBrook with unprecedented access to high-quality credits in proven small businesses.”

As part of the agreement with TowerBrook, ApplePie also announced the addition of Tim Morris, former Chief Risk Officer of GE Capital Franchise Finance, as a strategic advisor to the firm.  Tim spent over 25 years at GE Capital, a leading franchise lender specializing in financing mid-market operators in the restaurant industry.

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Salons by JC
Salons by JC
View Our Story

Salons by JC is an industry-leading salon suite franchise with more than 27 years of experience empowering beauty professionals across North America. Founded in 1997 in Dallas, Texas, by Jack Griffey and Cecil Miller, we pioneered the salon suite rental model — giving hairstylists, barbers, estheticians, nail technicians, massage therapists, and other beauty professionals the freedom to run their own independent businesses without the overhead of a traditional salon.
Today, Salons by JC operates 170+ locations across 20+ states and Canada, serving more than 7,000 beauty professionals — with a 92% tenant renewal rate that reflects the strength of our community and support system. We are proud to be the only salon suite franchise with a full-time, on-site Concierge Manager at every location, a model we've maintained for over 27 years.
Ranked 8 consecutive years on Entrepreneur Magazine's prestigious Franchise 500 — including #1 in the Salon Suites category in 2018 and 2019 — Salons by JC is the trusted name in salon suite rentals for both beauty professionals seeking independence and entrepreneurs looking for a proven franchise investment.
Our content is written to educate and inspire: whether you're a beauty professional exploring suite rental, a client searching for top-tier services, or an entrepreneur evaluating franchise opportunities, we're here to help you thrive.

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