Increased Interest from Private Equity Firms Fuels Franchise Growth
On the heels of a strong first quarter of franchise mergers and acquisitions, franchise brands across various sectors continue to join forces. These strategic partnerships and capital infusions provide entrepreneurs with greater access to new markets, knowledgeable advisors, quality talent and more.
The increase in franchise merger and acquisition activity can be attributed to interest from private equity firms. More than 12.4% of franchise brands have PE ownership or investment backing, according to FRANdata, a franchise market research and data analytics company. Private equity firms have acquired more than a dozen franchise broker, lead generation and marketing companies since 2021, reports the Franchise Times.
For example, after receiving backing from CNL Strategic Capital and Levine Leichtman Capital Partners, the International Franchise Professionals Group (IFPG), a leading franchise growth platform, was able to strengthen its analytical infrastructure by acquiring Franchise Business Review earlier this year.
M&A activity and investments from private equity firms will continue to play a major role in franchising moving forward. Alicia Miller, managing director at FRANdata, said 2026 is shaping up to be a busy year for franchising M&A and predicted “an active and possibly crowded year” for transactions. Read on for a listing of franchise mergers and acquisitions from Q2 of 2026.
June 2026 Franchise Mergers and Acquisitions
- Yum! Brands agreed to sell Pizza Hut for $2.7 billion to Yum China and LongRange Capital.
- Premium Service Brands, a franchisor of home services brands, acquired Wise Coatings, a residential and commercial floor coatings concept.
- Great Hill Partners took a stake in the Woof Gang Bakery & Grooming pet franchise.
May 2026 Franchise Mergers and Acquisitions
- IFPG launched Franchise Ignition, an organic lead generation platform created through its acquisition of the new evolution of St. Jacques Marketing.
- HomeFront Brands, a rapidly expanding residential and commercial property services franchise platform, added AdvantaClean to its portfolio.
- Diversified Royalty agreed to acquire Mr. Lube + Tires for about $171.3 million.
- Spark Harbor, a franchisor focused on youth enrichment and activity brands, announced its acquisition of the Bach to Rock music school franchise.
- A Texas bankruptcy court approved the sale of FAT Brands’ portfolio of restaurants to multiple buyers.
April 2026 Franchise Mergers and Acquisitions
- IFPG acquired Business Alliance Inc. (BAI), a franchise broker organization.
- New York Butcher Shoppe received a strategic investment from The Foundry Group to support the brand’s growth.
- Extraordinary Brands, an umbrella franchisor of boutique fitness brands, added Basecamp Fitness to its portfolio.
- Five Star Franchising, a platform of home service brands, acquired and launched Five Star Flooring.
- Tiger Global Management invested in PopUp Bagels, which now claims a valuation of $300 million.
- SSCP Management purchased Logan’s Roadhouse from SPB Hospitality for an undisclosed amount.
- Flynn Group, widely recognized as the world’s largest operator of franchises, tripled its Planet Fitness holdings by purchasing the 98-unit Grand Fitness Partners franchisee.
- Crux Capital, a Dallas-based private equity firm that partners with family- and founder-owned businesses, invested in Ivybrook Academy.
- Real Brokerage Inc. announced its plans to purchase RE/MAX Holdings Inc. for $880 million. The transaction is expected to close later in the year.
- Sixth Form Partners completed its majority investment in Morrow Hill, a Dallas-based commercial real estate firm.
