PE Profit Ladder Articles
Nothing Bundt Cakes Trades to KKR for >$2B
Roark had reportedly been exploring a sale of NBC since Oct 2025. The next step up the PE Profit Ladder for this venerable brand originally launched by two bakers.
Jiffy Lube Trades To Monomoy Capital in $1.3B Deal
Another well-established franchise system is trading ownership. Jiffy Lube will likely benefit from being a stand-alone business, but it also has the stuff to be the start of a new multi-brand automotive franchise platform.
Gong Cha is for sale: Asking price $2B
After acquiring the brand back in 2019, TA Associates is said to be weighing a sale of this fast expanding brand.
Franchise Business Review Acquired
Franchise Business Review has been acquired by IFPG, one of the leading broker platforms, which is backed by Levine Leichtman Capital Partners. LLCP is one of the most successful franchise investors. This transaction reminds us that M&A activity in franchising also rewards top suppliers who themselves attract interest from PE-backed platforms.
Alicia Miller Named Top 100 Franchise Influencer
Based on her pursuit of excellence and industry expertise, Alicia Miller has secured a place among the brightest leaders in the franchise sector. Congratulations Alicia Miller, Managing Director of Emergent Growth Advisors on being named a SeoSamba Top 100 Global Franchise Influencer!
2026 Will Be a Busy Year for Franchise M&A
Happy New Year just around the corner! 2026 is setting up to be an active year for franchise M&A. Much is being made in the press right now about the overhang of PE-backed businesses (31,000 according to Bain), many of which have been held awhile (7+ years average hold time,) and must be sold in order to return money to investors. Yes, continuation funds have allowed some investor-swapping to release prior groups and bring in new investors on the same asset. In the case of franchise platform investments specifically, this is not a case of kicking the can down the road, but allowing more time to fully integrate acquisitions and unlock significant enterprise value. This is especially true if platforms dip into smaller brands (or corporate brands with the intent to start franchising) - something many are now forced to do just because there aren't enough scale businesses for sale. Bankers and advisors are busy getting the first group of 2026 sale candidates ready. I've seen more companies represented by multiple advisors recently, especially for assets that aren't as shiny as they should be, perhaps a signal that sellers still anticipate challenges in 1H2026 and thus a desire to cast the relationship net as wide as possible to find buyers. We continue to see new entrants - new funds and family offices investigating franchising for the first time. I'm looking forward to an active and possibly crowded selling year. If you're thinking about selling in 2026 or early 2027, its never too early to start preparing!
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.
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