Harrington Park Advisors founder, Ashish Seth, Speaks at RFDC 2025

Ashish Seth, Founder of Harrington Park Advisors, joined a panel of distinguished industry experts to discuss the evolving financing landscape for restaurant brands. The conversation centered on the practical realities founders face when seeking growth capital, with a particular focus on the interplay between valuation, deal structure, and governance.

Panelists noted that while high headline valuations often attract attention, they can mask complex deal structures or earn-out provisions that may impact long-term outcomes. Founders were encouraged to look beyond surface-level numbers and carefully evaluate the expectations and partnership approach of prospective investors.

The discussion explored the relative merits of equity and debt financing. Debt, while a potential growth financing source, can introduce significant risk for businesses without strong financial buffers. Equity, though dilutive, may offer greater flexibility during challenging periods. The panel highlighted that eligibility for bank financing varies widely depending on business model and scale, with corporate-owned brands typically requiring $5 million or more in EBITDA, and franchisors needing a substantial unit base to support meaningful debt.

Investor alignment emerged as a recurring theme. The panel emphasized the importance of selecting partners who add value and share a long-term vision for the brand. Responsible growth, supported by investors who understand the sector and are prepared to provide ongoing support, was identified as a key factor in sustainable expansion.

The conversation also addressed the risks of hypergrowth, cautioning against expansion that outpaces organizational capacity. Panelists recommended a disciplined approach, prioritizing strong unit economics and replicability across markets. Demonstrating portability – consistent performance in diverse geographies – was cited as essential for attracting premium valuations and strategic capital.

Finally, the panel discussed the complementary roles of bankers and lawyers in the M&A process. Transparency, optionality, and protective provisions were highlighted as important considerations for founders navigating capital raises.

Founders were advised to define acceptable trade-offs between valuation, structure, and control before entering negotiations, prepare and validate unit economics, and build organizational capacity to support growth. Assessing capital needs beyond the initial transaction and developing a strategy for market portability were also identified as important steps in the financing journey.

As the financing environment continues to evolve, founders and management teams are encouraged to approach capital decisions with a clear understanding of their strategic priorities and operational capabilities. Thoughtful preparation, careful partner selection, and disciplined growth planning remain essential for building resilient brands in today’s competitive market.