PE Profit Ladder Articles
Freddy's Sold For $700M to New Private Equity Owner
Freddy's Sold For $700M to New Private Equity Owner
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.
Search Fund Acquisition Entrepreneurs & Franchising
Disillusioned by corporate life, more people see acquisition entrepreneurship as a better path - so they set out to find a business to buy. There are MANY such opportunities within franchising, including both smaller franchisors that need help, and multi-unit franchised units that can be the beginning of a consolidation play. If well established and proven, franchise systems can provide the guidance and support for these first-time business owners, though they are taking on an existing business. If those acquisitions are well run, there are larger upstream buyers when it's time to sell.
Franchise Suppliers & Private Equity
Acquisition alert: IFPG. The PE Profit Ladder isn’t just for franchisors and franchisee operating platforms that trade between private equity firms as those franchise businesses grow…, it’s increasingly the path for franchise suppliers as well. Each new owner brings a fresh perspective, capital for growth, and a different skillset as the journey evolves. CNL is managed by Levine Leichtman Capital Partners, LLC, one of the most experienced franchise investors. This is a successful exit by prior PE sponsor Princeton Equity Group.
Should You Start with a Franchise?
On this episode of Start. Scale. Exit. Repeat., we sit down with Alicia Miller, author of the award-winning book Big Money in Franchising, to explore why franchising is one of the most accessible—and misunderstood—paths to entrepreneurship. Miller explains that franchising gives aspiring business owners a unique opportunity: the ability to run and grow a business using a proven system. Instead of building every process from the ground up, franchisees follow an existing model that provides training, support, and brand recognition. This makes it an appealing option for those who want to become entrepreneurs without starting from scratch. But, as Miller emphasizes, not all franchises are created equal. With over 400 new brands launching every year—and many fading just as quickly—due diligence is everything. She walks us through the importance of evaluating your own skills and lifestyle goals before choosing a concept, and explains why buying an existing franchise resale can sometimes be a smarter bet than launching a new unit. We also discuss private equity’s growing interest in franchise brands and how that can impact both franchisees and franchisors. If you’re thinking about starting a business—or wondering whether franchising is a shortcut to ownership—this episode is packed with perspective, strategy, and cautionary tales.
Bubbakoo's Burritos Acquired By Thompson Street Capital Partners
Franchise M&A is alive and well (despite recent economic headwinds) for high quality brands with the right stuff. This week's example: Bubbakoos Burritos. Beloved Jersey shore QSR Mexican offering that delivers quality and strong value for customers, protein forward, fun and irreverent branding - and passionate franchisees. Other things to note: - M&A trades just UNDER the largest PE firms active in franchising (e.g. KKR, Roark, Blackstone, etc) remains a great place to be, knowing there are large upstream buyers for brands that can increase scale and create strong franchisee outcomes. Thompson Street Capital Partners made a shrewd pick here. With steady and thoughtful nurturing this brand is primed for scale. - Focus on executing the model, not fast franchise sales. This brand is growing fast but in steady and controlled way. Quality over speed and the speed will take care of itself. - Founders - choose a proven partner. TSCP has a solid track record and good things are expected here too. - Did you know that of the franchises that at some point in their history reach $100M in systemwide sales, 23% never exceed $150M? (Source: FRANdata) Having the right support and scaffolding in place is critical to reach the next level. If you hit an inflection point, bringing in the right capital and strategic partner can make all the difference.
Modrn Business Podcast: 2025 FRANdata
The franchise ownership model is evolving. On a recent episode of the Modrn Business podcast, hosted by Zack Fishman, CFE joined by guests Edith Wiseman and Alicia Miller, NACD.DC, CMAA, CFE dives into the trends that are redefining franchise growth, funding, and private equity interest—with expert insights on: - Why today’s franchisees are entering with a 5–10 year exit mindset How franchisors must rethink support and scalability to stay investable - The growing impact of credit risk scores like FUND on brand performance - What private equity and lenders are now both demanding from franchisors - Why resale activity is rising—and what it signals about system health
Market Uncertainty Increases Focus on Growing with Experienced Franchisees
Current market headwinds are prompting more franchise systems to proactively reach out to existing franchisees in other concepts to keep the growth flywheel spinning.
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PRIVATE EQUITY’S IMPACT ON FRANCHISING
EMERGING BRANDS
TRENDS
BUILDING SMART
PROSPECTIVE FRANCHISEES
TURNAROUNDS & CASE STUDIES