{"id":691,"date":"2015-05-21T12:00:55","date_gmt":"2015-05-21T19:00:55","guid":{"rendered":"http:\/\/sintelsystemspos.com\/?p=691"},"modified":"2015-05-05T13:33:16","modified_gmt":"2015-05-05T20:33:16","slug":"franchising-growth-fueled-in-part-by-private-equity","status":"publish","type":"post","link":"https:\/\/sintelsystemspos.com\/ar\/franchising-growth-fueled-in-part-by-private-equity\/","title":{"rendered":"Franchising Growth Fueled In Part By Private Equity"},"content":{"rendered":"

\"iStock_000026226158Small\"<\/a>The boom in franchising continues through 2014, but the past year also saw private equity play an important role.<\/p>\n

In a recent post in the Legal News section on JDsupra.com, Thomas Pitegoff says that private equity offers a franchisor with a growing franchise system a promising pathway to rapid growth.<\/p>\n

“An investment group can assist a franchise company strategically, tactically and with economies of scale,” Pitegoff writes.<\/p>\n

Just as we share our vast point of sale experience and expertise with startup owners in order to help them make the best decisions from the very beginning, we at Sintel Systems are happy to share articles, advice and commentary about franchising growth trends.<\/p>\n

Here are the highlights of “Private Equity Was Active in Franchising in 2014”:<\/p>\n

\u2022 Pitegoff writes that private equity sees value in the ongoing royalty stream of a franchise system and that franchised restaurants, hotels and retailers also typically have higher valuations than non-franchised businesses.<\/p>\n

\u2022 Pitegoff quotes figures from a Capital IQ presentation by Matt Kelly, of North Point Advisors which demonstrate that publicly traded restaurant, hotel and retail companies headquartered in the U.S. with a high percentage of franchised outlets tended to trade at higher valuations than those with just a few franchises: “In the group of companies he identified, the multiple of enterprise value to EBITDA averaged 9.7 in the companies less than 30% franchised.\u00a0 Those 30% to 60% franchised had an average multiple of 12.2x.\u00a0 Those more than 60% franchised had an average multiple of 15.0x.”<\/p>\n

\u2022 Notable private equity franchisor purchases from 2013:<\/p>\n

– Centre Partners (Uno Restaurant Holdings) acquired Captain D\u2019s in December, 2013<\/p>\n

– Sun Capital Partners (Boston Market, Friendly\u2019s, Bar Louie Restaurants) acquired Johnny Rockets in June, 2013.<\/p>\n

\u2022 Pitegoff’s post closes with a list of private equity acquisitions of franchise systems in 2014:<\/p>\n

– Roark Capital acquired Anytime Fitness in March, 2014.\u00a0 Roark also owns Arby\u2019s, Batteries Plus Bulbs, Carl\u2019s Jr., Corner Bakery, Massage Envy, Primrose Schools, Wingstop and Focus Brands, which in turn owns Auntie Anne\u2019s, Carvel, Cinnabon, McAlister\u2019s, Moe\u2019s and Schlotzsky\u2019s.<\/p>\n

– The Riverside Company acquired The Dwyer Group (Mr. Rooter, Rainbow International, Aire Serv, Glass Doctor, Mr. Appliance and others) from TZP Group in August ,2014 after previously owning Dwyer from 2003 to 2010.\u00a0 TZP Group acquired Snap Fitness in January, 2014.<\/p>\n

– Sentinel Capital (Cottman Transmission Systems, Huddle House Restaurants; Interim Healthcare; Massage Envy) acquired TGI Friday\u2019s in July, 2014 and Checkers and Newk\u2019s Eatery in March, 2014.<\/p>\n

– Levine Leichtman Capital Partners (Beef \u2018O\u2019 Brady\u2019s, FastSigns International, Lawn Doctor, Senior Helpers, Wetzel\u2019s Pretzels) acquired FASTSIGNS International in July, 2014.\u00a0 Levine Leichtman also owns Global Franchise Group (Great American Cookies, Pretzelmaker, Marble Slab Creamery, MaggieMoo\u2019s) which acquired Hot Dog on a Stick in August, 2014.\u00a0 Levine Leichtman formerly owned Quizno\u2019s.<\/p>\n

– Apollo Global Management acquired CEC Entertainment (Chuck E. Cheese) in early 2014.<\/p>\n

Read Thomas Pitegoff’s full JDsupra.com post\u00a0here<\/a>.<\/p>\n

For more insights into franchising growth trends, check out our related posts, Froyo Has Private Equity Smacking Its Lips<\/a>, Boom Times for the Restaurant Sector? Recruiting Franchise Announces Big Growth Plans<\/a>, The Top 12 Franchises, Based Upon Average Annual Single-Store Sales<\/a>, Tested Proven And Growing: The Motley Fool’s Roadhouse To Riches<\/a>, Growth Investors Likely To Get In Line For Shake Shack IPO<\/a>, and Fast-Casual Pizza Franchises Have Investors Over The Moon<\/a>.
\nSintel is the only full-service, direct-to-user point of sale provider \u2014 no resellers, no middleman. From software development to franchise incubator to ongoing support, part of Sintel’s commitment to our customers and industry is to share information on how to achieve success. Whether you’re a first-time franchise hopeful, a small business owner or an established chain, it’s always smart to stay on top of franchising trends.<\/p>\n

If you are interested in learning more about Sintel\u2019s point of sale (POS) systems and how our knowledge and support can impact your future success, call us for a complimentary phone consultation.<\/p>\n

Sintel Systems<\/a>\u00a0is the only direct to end user full-service provider of tailored Point of Sale systems across retail, restaurant and service industries, including\u00a0frozen yogurt shops<\/a>,\u00a0pizzerias<\/a>,\u00a0sushi restaurants<\/a>,\u00a0caf\u00e9s<\/a>\u00a0and\u00a0retail stores<\/a>.<\/p>\n

As a single source for business solutions, our experienced, knowledgeable team negotiates the complex POS landscape for you to enable you to find the right POS system for your business and budget.\u00a0Hardware<\/a>\u00a0–\u00a0Software<\/a>\u00a0–\u00a0Support<\/a><\/p>\n

Questions or Comments:\u00a0Contact us<\/a>\u00a0855-POS-SALES\u00a0www.SintelSystems.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The boom in franchising continues through 2014, but the past year also saw private equity play an important role. In a recent post in the Legal News section on JDsupra.com, Thomas Pitegoff says that private equity offers a franchisor with a growing franchise system a promising pathway to rapid growth. “An investment group can assist […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-691","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-uncategorized","7":"czr-hentry"},"_links":{"self":[{"href":"https:\/\/sintelsystemspos.com\/ar\/wp-json\/wp\/v2\/posts\/691","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sintelsystemspos.com\/ar\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sintelsystemspos.com\/ar\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sintelsystemspos.com\/ar\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/sintelsystemspos.com\/ar\/wp-json\/wp\/v2\/comments?post=691"}],"version-history":[{"count":1,"href":"https:\/\/sintelsystemspos.com\/ar\/wp-json\/wp\/v2\/posts\/691\/revisions"}],"predecessor-version":[{"id":692,"href":"https:\/\/sintelsystemspos.com\/ar\/wp-json\/wp\/v2\/posts\/691\/revisions\/692"}],"wp:attachment":[{"href":"https:\/\/sintelsystemspos.com\/ar\/wp-json\/wp\/v2\/media?parent=691"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sintelsystemspos.com\/ar\/wp-json\/wp\/v2\/categories?post=691"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sintelsystemspos.com\/ar\/wp-json\/wp\/v2\/tags?post=691"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}