The Largest Franchisee in the World Explores Sale Valued at Over $5 Billion

Estimated read time: 3 minutes and 47 seconds

FLYNN FTW

Flynn Group, the largest franchisee company in the world, is reportedly looking to sell a majority stake in its business (Read More)

Largest franchisee Flynn Group is looking to sell majority stake, valued at over $5 billion, including debt. Sources say private equity firms and sovereign wealth funds are interested.

BACKSTORY: Flynn Group, founded by Greg Flynn in 1999, operates Applebee's, Arby's, Pizza Hut, Taco Bell, Panera, and Wendy's. It oversees 2,600 units with $4.5 billion in annual sales.

RECENT EXPANSION: Flynn Group acquired master franchising rights for Pizza Hut Australia last year and reached an agreement with Wendy's to open 200 locations in Australia.

NAME CHANGE: Formerly known as Flynn Restaurant Group, the company changed its name after purchasing 37 Planet Fitness clubs in 2023.

INTERESTED PARTIES: Ontario Teachers’ Pension Plan (OTPP), Main Post Partners, and management may sell their stakes but remain invested after the deal.

FINANCIAL PERFORMANCE: Flynn Group generates annual EBITDA of over $450 million. Bank of America is assisting with the sales process.

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NET LEASE NUGGIES

• Georgia-based Popeyes franchisee files for Chapter 11 bankruptcy. RRG Inc., a franchisee of Restaurant Brands International, filed for bankruptcy protection in the U.S. Bankruptcy Court. The filing states that three of RRG's 17 Popeyes locations have caused financial burden, leading to bankruptcy. With debts to vendors, landlords, and creditors, RRG plans to close the failing locations and continue operating the profitable ones. This comes after other RBI franchisees, including Premier Kings Cajun and TOMS King, also filed for bankruptcy in 2022 and 2023. (Read More)

• SQRL shifts to owner-operated stores, terminates over 100 employees. The convenience store company has laid off more than 100 employees in the past month as it transitions to an owner-operated store model. The layoffs are expected to continue as the company plans to hire more staff for the new operating model. SQRL's acquisition of convenience stores from Blue Owl Capital provided the resources to implement the new business model. The company aims to have all 400-plus locations operating under the new structure within three months. (Read More)

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