World’s Largest Franchisee Explores Sale to Majority Stakeholder
Mega-franchisee Flynn Group is looking to partner with a multibillion-dollar investor in a deal that would peg the company’s value at $5 billion-plus, according to a Reuters report. Flynn Group operates Applebee’s, Arby’s, Panera Bread, Pizza Hut, Taco Bell, Wendy’s and Planet Fitness franchises. The company’s website states that Flynn Group takes in more than $4.5 billion a year in sales.
San Francisco-based Flynn Group is working with Bank of America on the sale, said the report, which cited anonymous informed sources because activities surrounding the potential deal are confidential. The Reuters article stated that “private equity firms and sovereign wealth funds” are the most likely buyers.
Three Owners at Present
Reuters’ sources said that the three entities that currently own all of Flynn Group may sell off portions of their ownership stakes while still retaining some of their investment in the company. Those owners are the private equity firm Main Post Partners, Ontario Teachers’ Pension Plan (OTPP) and Flynn Group’s management.
Main Post Partners owns slightly in excess of a third of Flynn Group, OTPP owns roughly one-third, and Flynn Group’s management owns the rest, the sources disclosed. In 2014, OTPP invested approximately $300 million in the company, an indication that Flynn Group’s total value was around $1 billion.
Flynn Group’s History
In 2023, Flynn Group made its first venture outside the United States when it acquired it acquired master franchise rights for 260 Pizza Hut sites in Australia business, according to an article by QSR. On the heels of that acquisition, it made a deal to open 200 Wendy’s units in Australia business through 2033, the QSR report said.
Real estate investor Greg Flynn created the franchisee portfolio company in 1999. It was originally called Flynn Restaurant Group but shortened the name after buying 37 Planet Fitness units last year, QSR said. Flynn Group operates more than 2,600 restaurant and fitness club units in the United States and Australia. Representatives for Flynn Group, OTPP, Main Post and Bank of America declined to comment for the Reuters article.
