Alto, a self-directed IRA platform, and FranShares, a fractional franchise investing platform, have announced a strategic partnership that allows investors to use their retirement funds to access FranShares’ offerings directly through Alto.
This collaboration aims to streamline the process for IRA holders to diversify into franchise investments, an asset class traditionally accessible primarily to ultra-wealthy individuals and institutional investors. By enabling franchise investing through IRAs, the partnership empowers individual investors to expand their portfolios beyond conventional stocks and bonds, leveraging the tax-advantaged benefits of retirement accounts.
Eric Satz, Founder and CEO of Alto, stated, “Franchising has a long history of successful business-building, but investing in that success has been off limits for most investors. Our partnership with FranShares expands access to income-generating businesses that align with customers’ long-term financial goals.”
FranShares recently introduced the Dunkin’ Gulf Coast Franchise Fund, which provides an opportunity for investors to participate in a portfolio of Dunkin’ locations within a growing region. Through the Alto integration, investors can now access this specific fund, as well as other FranShares funds, using their IRAs.
Kenny Rose, Founder and CEO of FranShares, commented, “FranShares was built on the idea of making franchise investing accessible to everyone. Working with Alto allows us to expand our mission, opening the door for investors to tap into their retirement accounts. Together, we’re committed to breaking down barriers and bringing franchise diversification to more investors than ever.”
Alto’s platform enables investors to diversify retirement portfolios with alternative assets such as private equity, venture capital, real estate, and private credit. The company acts as the IRA custodian for over $2 billion in assets, serving 32,000 self-directed IRA investors and supporting more than 2,500 issuers. Alto offers simplified access to investments with minimal paperwork and competitive fees, allowing users to establish Traditional, Roth, or SEP IRAs to invest in private markets.
FranShares, founded by Kenny Rose and backed by investors including Chicago Ventures, focuses on democratizing access to franchise investing. The platform serves a community of over 70,000 investors, offering opportunities for passive income and potential equity appreciation, while also providing franchisors and franchisees with a method for raising expansion capital. FranShares is a customer of Alto Solutions, Inc., with Alto providing custodial and administrative services for the self-directed individual retirement accounts involved.
Investors interested in learning more about this opportunity are invited to join a webinar on October 9 at 3:00 PM ET, featuring Alto Founder & CEO Eric Satz and FranShares Founder & CEO Kenny Rose.
