PE Profit Ladder Articles
1H2026 On Track To Be A Busy M&A Year - Including For Franchising
According to Private Equity Wire and Reuters, citing Pitchbook data, 2025 is poised to be a strong year for private equity (PE) asset exits. Buyout firms have completed over 1,300 exits through October, compared to 1,368 for all of 2024. We observed a notable increase in activity in the late summer and early fall within the franchise sector. However, these exits do not necessarily indicate new PE firms entering the market. Many are continuation funds that allow earlier investors to exit while new investors come in, all under the same PE sponsor's management. A 2025 Bain study indicates that we are still addressing an overhang of approximately 29,000 PE assets, many of which need to be traded following a 2.5-year exit slowdown. Current trends suggest a busy first half of trading in 2026!
Can Brands Create Empire Builders? Or Do They Have To Recruit An X Factor?
How much franchise unit success is the operator versus the brand, system, and training?
Roark Explores Sales of Nothing Bundt Cakes
People think of Roark Capital as a "long hold" investor - which is a fair generalization given that they have held some of their franchise investments for decades. But they also selectively divest. The latest example: Nothing Bundt Cakes, which has seen changes under Roark and some unit level consolidation as well as continued expansion. It is a reminder that even if your brand is acquired by "long-hold" Roark, it may trade again across the PE Profit Ladder.
Q3 Dealmaking Volume Picks Up
As discussed this week at Franchise Springboard, we are seeing the same Q3 dealmaking uptick in the franchise sector. Expectations are for a busy rest of this year for M&A teams. For founders looking to get something done in 2026, don't exit this year without a plan! What pre-work needs to get done now? What are key initiatives to achieve your objectives in 2026? What documentation needs to be gathered and prepared as part of your year-end wrap up? Get your advisors involved to help you get organized and build the right plan. Reach out if you need assistance and/or referrals.
Big Question: Should I Sell Multi-Pack Deals to Increase Franchise Value?
Does selling multiple territories at a time lead to increased enterprise value? How can brands compete for attention in broker networks when other brands are pushing multi-unit agreements? What is private equity's impact?
Freddy's Sold For $700M to New Private Equity Owner
Freddy's Sold For $700M to New Private Equity Owner
How to Handle Today's Common Franchise Development Challenges
Common challenges seen in franchise development today, and how to turn growth back on.
Proliferation of Franchise Incubator Hybrid Investor-Operators
Incubators & multi-brand platforms play an increasingly critical role in franchising to lift emerging brands. In this case... even launching brands into franchising, such as this latest example with Gregorys Coffee & Craveworthy Brands. For ambitious sponsor-operator-hybrid firms the field remains wide open, since there are far more sub-scale franchise brands than there are investors willing and able to assist. This takes grit, proven support systems, and strong sector experience as is the case here with Craveworthy. Several new incubators have been recently announced in fitness, home services, and other sectors. We will continue to see more incubator-style operating groups in franchising attempting to acquire and lift young brands. Good news for their brand partners, but yet another headwind facing unaffiliated emerging brands.
Shipley Do-Nuts Trades Between PE Firms
Beginning of the next growth phase for this beloved Texas brand! A successful exit of Shipley Do-Nuts by Peak Rock Capital and the latest to join the experienced franchise investing team at Levine Leichtman Capital Partners, LLC.
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PRIVATE EQUITY’S IMPACT ON FRANCHISING
EMERGING BRANDS
TRENDS
BUILDING SMART
PROSPECTIVE FRANCHISEES
TURNAROUNDS & CASE STUDIES