Abstract: A method for improving the cash flow realized in a franchise business operation comprises securitizing franchise fee cash flow from a group of franchisees and employing the resulting capital for identification and mitigation of risk of default in individual franchisee businesses. The method identifies franchisees at risk of default by creating a predictive data model for default and applying the model to the individual franchisees within the group. Embodiments mitigate risk of default by increasing the franchisee's business volume, by enhancing franchisee human capital, or by increasing the franchisee's business operational efficiency. Some embodiments direct capital to risk mitigation targeted equity investment. The method further provides for optimum timing of risk mitigation efforts.