Franchise Dealmakers: Five Star Franchising, Foodtastic, Planet Fitness, Minnie Bird, Hand & Stone
- Sickened customers sue Taco Bell over cyclosporiasis outbreak linked to lettuce.
- Five Star Franchising acquires Decorate With Lights; the restaurant franchisor Foodtastic adds the restaurant chain Kinton Ramen to its portfolio.
- A private equity firm has acquired Planet Fitness franchisee in Australia, and a second sale is announced for 23 bankrupt Popeyes locations in Orlando.
- The Minnie Bird fried chicken franchise and Hand & Stone spa celebrate their new multi-unit franchise agreements.
- Midas reveals two new building designs for units that will be built or renovated in the U.S. and Canada.
- Massage Envy expands its service offerings to include tension-reducing assisted stretching.
Taco Bell faces multiple lawsuits tied to the outbreak of the intestinal illness cyclosporiasis, according to RestaurantDive.com and Forbes. The federal Centers for Disease Control and Prevention tied the illness to shredded lettuce contaminated by the microscopic Cyclospora cayetanensis parasite, ABC News reported. The CDC has confirmed 4,100 cases and is investigating another 7,400 potential cases.
Starting July 17, the Mexican-influenced fast-food giant, its produce supplier Taylor Farms and at least one franchisee have been targeted in legal actions related to the sickness, Restaurant Dive reported. Taco Bell was targeted in at least three filings, a franchisee was cited in another lawsuit, and Taylor Farms was named in four legal actions, the online publication said.
Negligence and fraud are alleged in the lawsuits, which state that plaintiffs sustained economic losses for missed work; they also seek damages for pain and suffering. Two suits in California claim Taco Bell and Taylor Farms were negligent and sold products of no value, Restaurant Dive said, and Taylor Farms was singled out as fraudulently marketing products as fit for human consumption.
Franchise Brands under New Ownership
Five Star Franchising has expanded its portfolio to eight brands, and a Canadian restaurant franchisor will fold an Asian restaurant chain into its portfolio.
Five Star Franchising, an umbrella franchisor of home services brands, has added Decorate With Lights to its portfolio. Ten-year-old Decorate With Lights installs holiday, landscape, event and permanent roofline lighting on homes, businesses and municipal buildings. Other brands in Five Star’s portfolio are Bio-One, Card My Yard, Five Star Bath Solutions, Five Star Flooring, Gotcha Covered, Mosquito Shield and 1-800-Packouts.
Foodtastic has acquired its 30th brand, Kinton Ramen, an Asian dining franchise born and based in Canada. Founded in 2012, Kinton Ramen operates 58 locations in five Canadian provinces as well as one U.S. state. Foodtastic is a Canadian restaurant franchisor with more than 1,200 establishments.
Planet Fitness and Popeyes Deals
Two noteworthy sales involve an Australian Planet Fitness franchisee and 23 Popeyes restaurants that had been owned by a franchisee that declared bankruptcy.
On July 20, Planet Fitness Inc. and Franchise Equity Partners announced that the private equity firm is acquiring Bravo Fit, a Planet Fitness franchisee in Australia, from existing shareholders that included Planet Fitness. Planet Fitness exited its minority ownership position as a result of the transaction, a news release stated. The existing management team of Bravo Fit, which operates 32 Planet Fitness clubs, will remain in place.
SBH Foods will pay $2.7 million for 23 Popeyes locations in Orlando that were part of the bankrupt franchisee Sailormen’s portfolio, Nation’s Restaurant News reported on Friday. July 24 Initially RFI Ventures had agreed to buy the Orlando restaurants for $2.5 million but that deal unraveled. Sailormen formerly owned a total of 136 Popeyes units. Most have been sold and others have closed or will close, NRN said.
Multi-Unit Franchise Signings
The Minnie Bird restaurant franchise and Hand & Stone spa are growing their unit counts.
DiPasqua Brands signed on to bring 20 Minnie Bird restaurants to Orlando and Tampa. The first locations will open next year. Fried chicken, dirty sodas and free soft-serve ice cream headline Minnie Bird’s menu.
Eric Danver, owner and CEO of FGG Spa LLC, the largest franchisee in the Hand & Stone Massage and Facial Spa system, has signed an agreement to open 13 additional locations over the next five to six years. Danver currently has 63 Hand & Stone sites across eight states; most of FGG Spa’s new units will be located in Florida, according to a news release about the deal.
Midas Unveils New Store Designs
Midas has announced two new store designs: Contemporary Industrial and Urban Modern. Lenny Valentino Jr., president and chief operating officer of Midas International, said the new designs offer better bay visibility and larger waiting areas. The designs will apply to all new construction and renovations in the United States and Canada.
A Midas news release said Contemporary Industrial, with bold signage and branding, suits high-traffic suburban or highway-adjacent locations. A fit for denser markets, Urban Modern features large storefront windows and a retail-inspired interior. Both new designs have six bays.
Midas has more than 1,200 locations in the U.S. and Canada, plus another 900 in other countries. The company was founded in 1956.
Massage Envy Debuts Assisted Stretching
Massage and skincare franchisor Massage Envy has broadened its services with assisted stretching. Trained providers guide clients through stretches that address tension, a Massage Envy news release said. Three assisted stretching options are available:
- Relaxation – helping guests relax while decreasing muscle tightness.
- Relief – focusing on sore, tight or overworked muscles.
- Mobility – increasing flexibility to improve range of motion and ease of moveme
