New Leadership and Major Brand Transactions Highlight this Week’s Franchise Deals
- Dog Haus has signed a 50-unit deal with two experienced restaurant operators who will serve as executives for the ambitious fast-casual sandwich brand.
- Multiple buyers have acquired the restaurant holdings of FAT Brands, which declared bankruptcy early this year.
- Spark Harbor has acquired the music-school franchise Bach to Rock.
- Sparkle Grooming moves into Southeast Florida via a 29-unit deal.
- Red Robin is refranchising 30 Washington state and Western Idaho locations for $23.5 million.
- The Unleashed Brands Foundation is giving $200,000 to Blood Cancer United.
The Dog Haus franchise’s new investment model has yielded quick returns. In April, Dog Haus announced it would recruit established franchise operators from other brands as unit owners who also would take on leadership roles for the fast-casual franchise. On May 28, the franchise announced a 50-unit development deal with Chris Rigassio (who becomes Dog Haus president) and Garen Khodaverdian (the brand’s new chief operating officer), Restaurantnews.com reported.
“Chris and Garen bring an unmatched combination of operational excellence, franchisee experience and strategic vision to our table,” Dog Haus CEO Michael Montagano said in the online report. “I’ve known both for years… They are the right partners to help take Dog Haus to the next level.”
Rigassio and Khodaverdian started their careers as part-time Jersey Mike’s Subs employees and evolved to become multi-unit multi-brand franchisees. Today they operate 100-plus restaurants, including Jersey Mike’s and Wingstop brands, and will oversee the Dog Haus’ planned 1,500-unit expansion. Sixteen-year-old Dog Haus, which sells beef hot dogs, sausages, smashburgers and fried chicken sandwiches, has about 50 sites now operating.
Multiple Buyers OK’d for FAT Brands
A Texas bankruptcy court has approved the sale of FAT Brands’ restaurants to four buyers. FAT Brands had defaulted on more than $1.3 billion in debt before declaring bankruptcy in late January. Citing bankruptcy court proceedings, Restaurantdive.com reported on May 21 that:
- Buffalo’s Café, Fazoli’s, Great American Cookies, Hurricane Grill and Wings, Johnny Rockets, Marble Slab Creamery, Native Grill and Wings, Ponderosa and Bonanza steakhouses, Pretzelmaker, Round Table Pizza and Yalla Mediterranean will be sold to lender group FBG Bid Co. The debt transaction was valued at $595 million.
- TWNPKS Bid Co. will acquire Twin Peaks in a $359 million debt transaction that will be converted into equity.
- Amazing Brands will buy Hot Dog on a Stick for $8 million. Piero’s Italian Cuisine, Pinkbox doughnuts and Siegel Bagelmania are the other concepts in Amazing Brands’ portfolio.
- Tabco International Food Catering is purchasing Elevation Burger for $2.5 million. Tabco’s LinkedIn page states that it is a Kuwait-based food-service company.
Spark Harbor Acquires Bach to Rock
Spark Harbor, which operates two other youth enrichment brands, has acquired the Bach to Rock music-school franchise from Cambridge Information Group, a private investment firm. Cambridge Information acquired a single Bach to Rock site in 2007 and nurtured its growth to the 57 locations now in operation. Ten additional units are under development, according to a Bach to Rock news release.
Maryland-based Bach to Rock, founded in 2007, provides music instruction from early childhood through high school and beyond. It joins the Spark Harbor portfolio that includes Water Babies, a baby swim school franchise with more than 600 locations worldwide, and USA Ninja Challenge, which does youth obstacle course training at 50-plus locations.
Sparkle Grooming Inks 29-Unit Deal
Sparkle Grooming Co., a membership-based and wellness-focused dog grooming franchise, will expand into Southeast Florida via a new 29-unit development agreement. Investors Michael “Mici” Fluegge and Patrick Greco will operate Sparkle Grooming locations in Miami-Dade, Broward and Palm Beach Counties.
Fluegge previously served as a multi-unit franchisee and regional developer for The Joint Chiropractic, was a founding investor and area developer for Hammer & Nails Grooming for Guys, and was a former multi-unit franchisee with Massage Envy. Greco is a chiropractor who has focused on preventive health care.
In a company news release, Sparkle Grooming states it has awarded more than 500 development licenses nationwide. The brand was founded in 2022.
Red Robin Selling 30 locations for $23.5M
Red Robin Gourmet Burgers has agreed to sell 30 Washington State and Western Idaho locations for $23.5 million as part of a refranchising effort. The buyer is Washington-based Evergreen Dining LLC, according to Restaurant Business.
The sale, part of a turnaround plan for 500-unit Red Robin, is expected to be finalized this year. Red Robin is selling corporate-owned locations in order to pay down $171 million in long-term debt, the publication said.
Unleashed Brands Foundation Donates $200,000
Unleashed Brands, an umbrella franchisor of youth enrichment brands, has announced a $200,000 donation to Blood Cancer United.
The contribution is part of a $1 million commitment by the Unleashed Brand Foundation, whose Dare to Dream Project funds pediatric blood cancer research and advocacy while also supporting patients’ families, according to a news release from the franchisor. The Unleashed Brands Foundation’s outreach also provides resources to empower at-risk youth through education, financial support and volunteerism.
Founded in 2021, the Unleashed Brands portfolio includes Class 101, Premier Martial Arts, Snapology, Sylvan Learning, The Little Gym, Urban Air Adventure Park and Water Wings Swim School.
