Franchise News: Big, Beautiful Bill Perks (Plus New Deals)

Tax Breaks for Franchises and Workers; News on Red Robin, Layne’s Chicken, 7-Eleven, Urban Air, Menu Tweaks, Great Clips Contest

Big, Beautiful Bill Brings Tax Breaks for Franchises

Franchisees and their employees could benefit from the One Big, Beautiful Bill, federal legislation that Congress passed this month. Matt Haller, president and CEO of the International Franchise Association, has praised the bill, and Entrepreneur magazine identified these provisions affecting franchises:

• Extension of the 199A deduction, which permits pass-through entities like LLCs and S corporations to deduct a portion of their income. Most franchisors operate as pass-through entities.
• Continuation of bonus depreciation that lets franchises expense about $16 billion during the first year after the bill goes into effect. This money may be used to buy equipment, develop new locations and/or renovate. 
• Modification of the way businesses determine interest deductions, moving from EBIT (earnings before interest and taxes) to EBITDA (which includes depreciation and amortization). Collectively, U.S. franchise businesses could deduct an additional $6 billion in interest.
• Elimination of the federal income tax on tips, a potential $6 billion savings per year for tipped workers, and on overtime pay, saving franchise employees $300 million annually. 

Red Robin’s Refranchising and Value Meal

Under a new strategic plan named First Choice, Red Robin will trim costs and refranchise some units to improve its bottom line. “We see an opportunity for current franchisees to gain a larger footprint” within Red Robin, CEO and President David Pace said in a RestaurantDive.com report.

In an investor call on Tuesday, Pace emphasized that refranchising will be limited. “This is not a fundamental shift in our operating strategy to a more asset-light model,” he said. Red Robin wants most locations to remain corporate-operated. The casual-dining burger chain said it laid off a small number of employees as it plans to sell dozens of corporate stores, Restaurant Business stated Friday.

As another aspect of the First Choice plan, Red Robin will debut a new $9.99 value meal combo today. The Big Yummm meal will feature a Red’s Double Tavern Burger, bottomless fries and a beverage, per Restaurant Business. 

Big Deal: Arby’s Franchisee Invests in Layne’s 

Doug McGuire, who owns eight Arby’s locations, has signed on for 22 Layne’s Chicken Fingers franchises, with the first opening in spring 2026 in Ohio. After those locations are operational, McGuire hopes to open another 50 Layne’s units, according to Franchise Times. 

Texas-based Layne’s Chicken Fingers, established in 1994, topped 30 units this year. In summer 2024, the company signed a 25-unit agreement in Texas with a large Whataburger franchisee, Franchise Times added.

7-Eleven Deal Falls Apart

Canadian retailer Couche-Tard Inc. has withdrawn its $47 billion offer to acquire Seven and i Holdings, 7-Eleven’s parent, United Press International said on Wednesday. In a letter to the board of Seven and & i Holdings, Couche-Tard complained Seven & i had not put forth “sincere or constructive engagement.” Couche-Tard added that “based on this persistent lack of good-faith engagement, we are withdrawing our proposal.” Seven & i denied the Couche-Tard allegations. 

7-Eleven has experienced a decline in customers but hopes for a turnaround by increasing its in-store fast-food restaurants, RestaurantDive.com reported Wednesday. The publication said that in fiscal year 2025, 7-Eleven would add 50 restaurants, specifically mentioning Raise the Roost Chicken & Biscuits and Laredo Taco Co. 7-Eleven stores with fast-food restaurants average 50% higher traffic than those without, according to the convenience store franchisor.

Urban Air Earns Newsweek Kudos

Newsweek has anointed Urban Air Adventure Park as one of America’s Greatest Workplaces for Gen Z. The ranking is determined by having work environments that are positive and supportive as well as upwardly mobile, Franchising.com notes. 

The entertainment franchise – which includes trampolines, slides, laser tag, dodgeball, electric go-karts and obstacle courses – has about 15,000 team members, with 60% classified as Gen Z, the demographic label for people born 1997 to 2012. Urban Air is part of the Unleashed Brands portfolio.

What’s New on the Menu?

• McDonald’s hit it big with its July 10 Snack Wrap relaunch, according to Restaurant Dive, citing statistics from Placer.ai. Traffic increased 15% on July 10 compared to the year-to-date average and 11% compared to the year-to-date weekday average. On July 11, visits increased 22.3% compared to the year-to-date average, and 7% for the year-to-date respective weekday average.
• To please value-hunting customers, Habit Burger & Grill presents the Family CharBox bundle, Nation’s Restaurant News reported. CharBox options are the Classic Family ($35 for four Charburgers with cheese, four orders of fries and four sides of house-made ranch dressing), Variety Family ($35 for a Double Char, BBQ Bacon Char, Teriyaki Char and Portabella Char, plus fries, onion rings, sweet potato fries, Tempura Green Beans and sauces), and Build Your Own Family: $40 for a wholly custom choice of burgers, sides and sauces.
• Big Chicken, founded by Shaquille O’Neal (above), has refreshed its menu, Restaurant Business reported on Wednesday. New sandwich and salad ingredients, which are also available as sides, include corn elote, fried cheese curds and onion rings; a new Shaq Snacks category includes five smaller chicken finger sandwiches with various toppings.
• Lemonade Refreshers have become a permanent fixture at Caribou Coffee. The peach flavor contains chunks of peaches, and strawberry pieces zing up the strawberry and mixed-berry ’ades, Restaurant Dive said. To sweeten the deal, the chain gives Caribou Perks members half off on their afternoon Lemonade Refreshers from now through Aug. 16.
• Primo Quesadilla Meals star in Dillas Quesadillas’ new menu. QSR Magazine listed an array of ingredients, including chicken, steak, smoked brisket, jalapeño ranch and churri dipping sauces, portobello mushrooms, bacon, bean spread, Hatch green chile peppers and queso drizzle. Each meal comes in a two- or four-slice option and is accompanied by seasoned fries and a drink.

Great Clips’ Back-to-School Officer

Great Clips is running a contest to find a chief back-to-school officer, an honorary position for a 5- to 14-year-old student. The winner will receive a $10,000 contribution to his or her education fund. 

Parents may apply on kids’ behalf by submitting a story telling how their child brought calm, creativity or clever solutions to the harried back-to-school period. Great Clips will judge applications based on entrants’ passion for helping parents ease the chaos of the transition period, by problem-solving creatively and by demonstrating a love of back-to-school haircuts and Great Clips. Entries will be accepted from now through 11:59:59 p.m. Eastern Time on Aug. 15. Parents will receive a $2-off coupon after submitting their child’s application. For further details, click here.