The year 2012 was filled with events in the franchise industry that will contribute much in steering its path in 2013 and further into the future. Likewise, there were also milestones set last year that allow some glimpses on the track that the industry will take as its players explore the many franchise opportunities available in the market. Here are some of these developments:
Forward-looking tie-up:
Edible Arrangements forged a strategic partnership with the private equity firm Catterton Partners which mainly provides equity capital to consumer companies. Serving small to middle consumer market companies, Catterton also has an investment stake in Bloomin’ Brands whose portfolio of brand franchises for sale includes Bonefish Grill, Outback Steakhouse, and Noodles & Company.
Executive movements:
Jonathan Fitzpatrick took over as president and CEO of Driven Brands, Inc., replacing Ken Walker. Based inNorth Carolina, Driven Brands is the parent company of Maaco Collision Repair & Auto Painting andMeinekeCarCareCenters. The leadership change followed the purchase of Harvest Partners of the majority stake in Driven Brands under a recapitalization transaction.
Stuart Mathis was appointed president and CEO of Quiznos, replacing Greg McDonald who spent fourteen years at the helm of the company. Mathis was formerly UPS Store chain’s president, and he also spent some time as a franchising executive for Dominos Pizza.
Expo shifts to new venue:
The largest franchise expo in theU.S., the International Franchise Expo, was held at theJacobJavitsCenterinNew York City, in June, breaking the twenty-year tradition of having the event inWashington,D.C.
Equity restructuring:
The initial public offering (IPO) of CKE Inc. was postponed because of “market conditions.” Based inCalifornia, this company owns Hardee’s and Carl’s Junior. The private equity company Apollo Management took the company private two years ago for just below $700 million. Public shareholders would have held just 24 percent of CKE had the IPO pushed through.
Panera Bread undertook a new $600-million share repurchase program. This scheme replaced a $600-million three-year buyback program launched in 2009, of which more than 50 percent remain untapped.
Atlanta-based Roark Capital Group bought Massage Envy from another private equity company, Sentinel Capital Partners, which had acquired the fast-growing wellness franchise just 33 months back. Besides Massage Envy, Roark’s portfolio of franchise companies now includes Bosley’s Pet Food Plus, Arby’s, Corner Bakery, FASTSIGNS, FOCUS Brands, Money Mailer, McAllister’s Deli, Primrose Schools, and Wingstop.