PE Profit Ladder Articles
As Private Equity Turns Its Attention to Franchise Suppliers, M&A Activity Picks Up
Franchising's resilient model makes suppliers active in franchising targets in their own right for private equity acquisition and the creation multi-service platforms.
Legacy Franchise Leaders and Breakout Stars Know Innovation Always Matters
The franchise model practically invites disruptors to enter and shake things up. How do other brands lose their mojo? And with so many incentives to get things right, can PE backers instead get in the way?
Important SBA Lending Update From FRANdata
If you're in franchise management, a broker/FSO, a franchise investor underwriting growth, or a prospective franchisee, read this update from #FRANdata on SBA lending. And if you're not already a FRANdata Registry member, there is an important SBA deadline looming. If you are a brand planning to enter a sale process in the next couple of years, or a banker/advisor advising those brands - be prepared for more scrutiny on the growth story related to financing that deal funnel. Why pay for a sold-not-open funnel that's unlikely to materialize? "Embedded value" or "phantom funnel?" Before you invest, ask FRANdata what lenders are saying about the brand you're considering underwriting.
Franchise M&A Update Q1 2026
This month in Franchise Times, an update on private equity activity in the franchise sector and what it means for brands, franchisees, and management. 35 years after PE's arrival in franchising, is there anything left untouched to buy as the 1st institutional capital in the door? Why do we still have broken auctions when there are so many PE buyers looking to invest in franchising? And why isn't all this big money helping more new brands grow?
Mega 99 List for 2026
There are 240,000+ franchisees in the US. Approximately 40,000 of them own multiple units. In most cases, 2-5 units. But it is also true that some franchisee entrepreneurs have used the franchise model to build huge platforms, often with multiple brands. These platforms may be publicly traded or private equity-backed. Franchise Update Media tracks the largest operators in their annual "Mega 99" list. Check out the list here.
AI's Potential to Transform Franchising Includes a Major Power Balance Shift
No sector is entirely "AI-proof" but franchising is well positioned to benefit, provided franchisors don't create unnatural bottlenecks to progress as franchisees continue to adapt.
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.
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PRIVATE EQUITY’S IMPACT ON FRANCHISING
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