All articles tagged with #franchising
A proposed class-action lawsuit in Chicago alleges that McDonald's uses AI to coordinate menu prices across its roughly 14,000 U.S. franchise locations, violating antitrust laws. While the company insists franchisees retain final pricing control, critics argue centralized data reduces competition. The dispute highlights legal uncertainties surrounding algorithmic pricing in franchise models.
Burger King is selling approximately 200 company-operated U.S. restaurants to local franchisees by the end of 2026, a key step in its turnaround strategy. The chain aims to reduce its corporate footprint to about 300 locations, prioritizing operators who live near their stores over large private equity groups to improve performance and financial stability.
Meritage Hospitality Group, which operates 314 Wendy’s restaurants in 15 states, filed for bankruptcy protection after Wendy’s terminated its franchise agreement. The company says it will continue operating and paying about 9,000 employees during the proceeding, while Wendy’s claims roughly $27.4 million in royalties and $119.5 million in continuous-operations fees; Meritage had already closed 60 Wendy’s locations last year as part of a restructuring.
Tropical Smoothie Cafe unveiled a brighter, palm-frond branding and a unified packaging design as it pursues rapid growth under Blackstone, aiming to exceed 1,800 locations by year-end and expand internationally. The company has consolidated its marketing budget into an $80 million fund, grown its loyalty program to 13 million members, and is rolling out a redesigned mobile app and website and testing self-order kiosks to drive repeat business. Most revenue comes from franchising; net income in fiscal 2025 was $115.4 million on $131.4 million in revenue. No IPO is planned for now, with growth opportunities strongest in the West and Midwest amid wellness-driven demand for beverages.
A Florida Pizza Hut Classic location in Homosassa Springs has become a viral sensation thanks to its 1980s-inspired decor, drawing customers from hours away and boosting dine-in sales. The Daland Corp. franchise operator says nostalgia is attracting younger customers, encouraging face-to-face interaction, and the company plans to roll retro elements out to more locations as demand grows.
Jersey Mike's Subs began trading on the NYSE as JMKE, raising about $1B and valuing the company at roughly $7.3B after selling 43.5M shares; with nearly 3,300 locations, it’s the largest publicly traded hoagie chain and among the biggest U.S. restaurant IPOs. The stock opened around $21 (vs $23 IPO price) and has fallen about 2% since; proceeds will pay down debt and fund international expansion toward a 15,000-restaurant goal. CEO Charlie Morrison says a higher-income customer base helps weather dining trends, and the deal signals a positive path for other consumer IPOs.
Yum! Brands is pushing Taco Bell’s international expansion toward 3,000 overseas restaurants by 2030, relying on franchise partners as international sales outpace the US (11% in 2025 and 16% in Q1). The growth plan follows the sale of Pizza Hut and targets markets like Germany and Poland. However, a cyclospora outbreak prompting some ingredient removals has spooked investors, contributing to a short-term dip in Yum!’s stock, though officials say Taco Bell isn’t linked to the outbreak.
Jersey Mike's filed for a NYSE IPO under the ticker JMKE after rapid growth, reporting 50% same-store sales growth from 2020–2025 and systemwide sales of about $4.3 billion in 2025. With roughly 3,300 US locations, the chain aims to add 7,500 more US stores and expand globally to about 15,000 stores, including 300 in Canada by 2034 and 300 in the UK/Ireland. Founder Peter Cancro will play a key overseas role, Blackstone has held a majority stake since 2024, and Jersey Mike's was named America’s top-rated quick-service restaurant by the American Customer Satisfaction Index.
Jersey Mike’s filed to go public on the NYSE under JMKE, citing 2025 same-store sales up 3% (50% since 2020), net income of $55 million on $724 million revenue, and $4.3 billion in annual system sales across about 3,300 mostly franchised locations. Blackstone previously owned a majority stake; CEO Charlie Morrison (ex-Wingstop) leads the chain with founder Peter Cancro remaining involved as it eyes expansion.
Smoothie King says current wellness trends—protein and fiber focus, GLP-1 medications, and a push away from ultraprocessed foods—are driving growth. The privately held chain reports a 64% rise in system-wide sales over five years, 23% more stores, and plans to add more than 200 locations in coming years (about 90 this year). It also unveiled a warmer, redesigned store format and will expand into flatbreads. For 2025, revenue reached $66.16 million (up 4%), with net income down about 6% to $14.84 million, while 96% of stores are franchise-operated. The company emphasizes transparency around ingredients, stemming from its 2019 Clean Blends initiative.
The Real Brokerage plans to acquire RE/MAX Holdings in an $880 million deal to form the Real REMAX Group, pairing Real’s cloud-based platform with REMAX’s global franchised network to serve more than 180,000 agents across about 8,500 franchisees and roughly $2.3 billion in pro forma annual revenue. Tamir Poleg will be CEO of the combined company, which will also keep Motto Mortgage; the transaction is expected to close in the second half of 2026 pending regulatory and shareholder approvals, with Real shareholders owning about 59% of the new entity. The deal aims to generate about $157 million in adjusted EBITDA pre-synergies and around $30 million in cost savings, though integration will be complex given the centralized brokerage versus decentralized franchise structure. The headquarters will be in Miami, while RE/MAX will maintain its Denver base and operations.
Real Brokerage will acquire RE/MAX Holdings in a deal valued at about $880 million (7x 2025 EBITDA) to form Real REMAX Group, a technology-enabled global platform that combines Real’s AI-powered brokerage with RE/MAX’s global brand and 145,000+ agents across 120+ countries. The pro forma 2025 revenue would be roughly $2.3 billion with about $157 million in Adjusted EBITDA, aided by ~$30 million in annual cost savings and ~100 basis points of margin expansion. The transaction is expected to be earnings- and EBITDA-accretive in the first full year post-close, with closing anticipated in H2 2026. Ownership would be ~59% Real and ~41% RE/MAX, and Real has secured a $550 million financing commitment to refinance debt and fund cash consideration. The combined group will be headquartered in Miami as a holding company, with Real remaining an owned brokerage and RE/MAX continuing its franchise network and Motto Mortgage brand. The deal requires shareholder and regulatory approvals and is structured as a tax-free transaction for U.S. federal income tax purposes.
Bill Phelps and Andrew Feghali, early backers of Dave’s Hot Chicken, are backing Mike’s Red Tacos in a nationwide birria-franchise expansion that could add hundreds of restaurants across the U.S. and internationally; the two-location San Diego chain has already secured development deals for over 200 units, with Vincent Montanelli named president and founder Mike Touma retaining San Diego rights while remaining on the board as a franchisee.
Yum! Brands says Pizza Hut will close about 250 underperforming U.S. locations in the first half of 2026 as part of the Hut Forward plan to modernize marketing, technology, and franchise agreements; the closures amount to roughly 3% of Pizza Hut’s U.S. restaurants, amid a Q4 2025 sales decline, while Taco Bell and KFC posted gains.
Pizza Hut plans to close roughly 250 U.S. stores in the first half of 2026 as Yum Brands reviews the brand’s positioning, potentially pursuing a sale; the closures come as U.S. same-store sales fell in Q4 and for the year, highlighting ongoing challenges in the chain’s turnaround.