PE Profit Ladder Articles
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!
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?
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?
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.
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