Franchise Acquisitions, Expansions and Exits Shape Year-End Franchise News
- California Pizza Kitchen was sold to a multi-brand investment group, with Convive Brands set to oversee global operations and franchising.
- Several franchise brands announced major moves, including Midas acquiring its largest franchisee and Mixue opening its first U.S. location.
- Growth deals continued as Lola Beans, Pilates Addiction, Batteries Plus and Qdoba expanded units and territories.
- Legal and financial pressures surfaced as FAT Brands faced a shareholder lawsuit and a major franchisee filed for bankruptcy.
Consortium Brand Partners, Eldridge Industries, Aurify Brands and Convive Brands will jointly buy California Pizza Kitchen, according to a news release. Convive Brands, an investment and operations platform of restaurant concepts, will direct global operations and serve as master franchisor for all California Pizza Kitchen restaurants. Bain Capital is backing the transaction with a debt and equity investment, RestaurantDive.com reported. The transaction is expected to close by Dec. 31.
Founded in 1985 in Beverly Hills, California Pizza Kitchen has 120 restaurants in 10 countries and sells frozen pizzas and other products in more than 10,000 grocery stores. California Pizza Kitchen also recently launched a pizza vending machine concept at airports, on college campuses and at entertainment venues.
Consortium Brand Partners invests in consumer brands such as Jonathan Adler, Draper James and Outdoor Voices. Convive Brands, part of the multinational Eldridge Industries portfolio, is known for its Le Pain Quotidien US and The Little Beet brands. Aurify Brands focuses on building, owning and scaling franchised and fast-casual restaurants.
Midas International Acquires Max Auto
Midas International revealed in late December that it will acquire its largest franchisee, Max Auto Supply Co. Founded in 1958, Toledo, Ohio-based Max Auto operates 111 Midas franchise units and has more than 650 employees in Georgia, Kentucky, Michigan, New York, Ohio and Pennsylvania. Max Auto will continue to operate as a standalone business, Midas announced in a news release.
Midas performs automotive repairs and maintenance at some 2,000 franchised and licensed domestic and international sites. Roughly 1,200 of those businesses are located in the U.S. and Canada.
Lola Beans Franchisee Scales From 15 to 120 Texas Units
Lola Beans franchisees Kirk and Coleen Jeter have expanded their initial 15-unit deal to 120-plus locations in Texas. Five-year-old Lola Beans is a drive-thru brand that sells coffee, Lola Colas infused sodas and plant-based energy drinks.
The Jeter Group, which operates multiple Wingstop and Crumbl stores in Maryland and North Carolina, plans to launch four to six Lola Beans units each year. QSR Magazine quoted Coleen Jeter as praising Lola Beans for its “strong culture, low labor, powerful unit economics.” The first Texas location is expected to open in the second quarter of 2026, with additional sites planned for rapid rollout starting within the Dallas-Fort Worth area.
Global Coffee and Ice Cream Giant Mixue Debuts in U.S.
China-based Mixue, a coffee and ice cream restaurant franchise, entered the U.S. market Dec. 19 in Los Angeles, Restaurant Business reported. Founded in 1997, Mixue has more locations – 53,000 globally — than any other global restaurant chain, the publication stated.
The brand, which has rapidly expanded outside China in recent years, is known for low-cost items, with most priced $1.19 to $4.99. For example, its ice cream costs $1.19; lattes are $2.99.
Unison to Buy Krispy Kreme’s Japan Holdings
Krispy Kreme will sell its Japanese operations to Unison Capital for $65 million in cash, Restaurant Business reported on Dec. 19. The Charlotte-based doughnut brand said it would use proceeds from the sale to reduce its debt.
Krispy Kreme has been in Japan for 20 years and has 89 locations there; it also sells through other retail partnerships in Japan. Unison specializes in consumer, health care and business-to-business services. The deal is expected to be concluded in the first quarter of 2026.
Legal and Financial Troubles Hit Major Franchises
- A FAT Brands Inc. shareholder alleges in a lawsuit that the company hid its financial problems by taking out short-term loans for as much as $15 million. In his lawsuit, Kevin Gordon demands to examine the financial records of FAT Brands, which operates Fazoli’s, Fatburger and other restaurants, Restaurant Business reported on Dec. 19. FAT Brands has defaulted on more than $1 billion in debt.
- Buddy Mac Holdings, a 47-unit Buddy’s Home Furnishings franchisee, has filed for Chapter 11 (reorganization) bankruptcy protection in December, Franchise Times reported in mid-December. Buddy Mac has 1,000 to 5,000 creditors, the filing stated. Buddy’s Home Furnishings is a rent-to-own furniture, appliance and electronics brand. The parent company of Buddy’s Home Furnishings, Franchise Group, declared bankruptcy last year.
Franchise Growth: Pilates Addiction, Batteries Plus and Qdoba
- Pilates Addiction has topped the 200-territories-sold mark, the franchise said in a news release. The fitness studio brand celebrated the milestone at Fontainebleau Miami.
- During 2025, Batteries Plus added 63 new units and now has a presence in all 50 states – one of the newest being in Hawaii — the company said in a mid-December news release.
- Doherty Enterprises will develop 27 Qdoba Mexican Eats restaurants in New York and New Jersey, part of Qdoba’s Northeastern growth surge. The brand has signed multiple agreements – including a 35-unit deal with The Rose Group — that will bring 90 restaurants (including the Doherty deal) to those states and Pennsylvania, RestaurantDive.com reported. Doherty’s also has invested in Applebee’s and Jinya Ramen Bar.
