300 Papa Johns Stores to Close; Xponential Settles Cases for $39.75 Million
- Through May 1, entrepreneurs may apply for the Franchise Ascension Initiative, an International Franchise Association program which helps individuals from underrepresented groups and economically disadvantaged people to become franchisees.
- Papa Johns will close 200 underperforming stores this year and another 100 in 2027. Most are franchise operations.
- Xponential Fitness has agreed to pay $39.75 million in two settlements, one with franchisees and one with the Federal Trade Commission.
- The franchisee KBP Brands, which owns and operates more than 1,100 fast-food restaurants, has added 78 more Sonic Drive-Ins to its portfolio.
- Wendy’s has signed deals for 62 future locations in Mexico.
- La Madeleine launches an all-day brunch menu; Shipley Donuts offers limited-time St. Patrick’s Day-themed goodies.
Aspiring franchise owners may apply now through May 1 for the 2026-2027 Franchise Ascension Initiative, which helps individuals from underrepresented groups and economically disadvantaged people to become franchisees. The intensive accelerator program offers a wide range of mentorship that includes in-person and virtual education and training.
This six-month International Franchise Association program includes:
- Training on business management and franchise fundamentals.
- Expert speakers, case studies, field experiences and attendance at major franchise events.
- Personalized mentorship that concludes with a pitch contest in which participants develop and present a franchise business plan.
For further details, visit the IFA website. Click here to apply.
Papa Johns to Close 300 Stores
Papa Johns announced in late February that it plans to close 200 North American locations this year and another 100 next year. Chief Financial Officer Ravi Thanawala said most of the restaurants are franchisee-owned, a Fox Business article noted. The pizza brand also has laid off about 7% of its corporate workforce, QSR Magazine reported.
Same-store sales on the continent fell 5.5% in the fourth quarter of 2025, according to QSR Magazine, and franchises have average unit volume of less than $600,000, with most losing money. This year Papa Johns expects North America same-store sales to decline 2% to 4%, the online publication said.
The Atlanta-based brand finished 2025 with 3,523 restaurants in North America. And while Papa Johns isn’t technically up for sale, CEO Todd Penegor has said offers would be considered.
Xponential to Pay $39.75 Million in Settlements
Xponential Fitness has agreed to pay $17 million to resolve a Federal Trade Commission investigation and finalized a $22.75 million settlement to more than 500 current and former franchisees, Athletechnews.com reported. The FTC settlement will be paid out over 12 months, the web article said, and the larger settlement will be spread over 35 months.
Allegations investigated by the FTC haven’t been revealed, but the franchisee settlement arose in response to owners’ complaints that the franchisor misled them. After the settlements were disclosed, shares of Xponential fell more than 40% on Feb. 27. (The umbrella franchisor had gone public in July 2021.)
In its fourth-quarter earnings report, the boutique fitness franchisor also disclosed that about 30% of its studio licenses are more than a year behind their development schedules and classified as inactive, Athletechnews.com said. Xponential Fitness brands include Body Fit Training, Club Pilates, Pure Barre, StretchLab and YogaSix. Xponential headquarters are in Irvine, Calif.
KBP Brands Acquires 78 More Sonics
KBP Brands, which owns and operates more than 1,100 Arby’s, KFC, Sonic and Taco Bell restaurants, in late February announced that it has increased its Sonic ownership by 78 drive-in locations. The newly acquired units are in Kentucky, North Carolina, Ohio, Tennessee and Virginia, KBP stated in a news release.
Founded in 1953, Sonic has more than 3,400 restaurants in 47 states. KBP is one of the nation’s largest franchise companies with approximately $1.5 billion in annual sales. The Kansas-based multi-unit, multi-brand operator – or MUMBO – has franchises located in 32 states.
Wendy’s Will Expand in Mexico
The Wendy’s Co. announced March 4 that two new franchise agreements will add 62 restaurants to its presence in Mexico in the coming years. Wendy’s sees high revenue potential in Mexico, projecting an annual growth of 7.1% there, the company stated in a news release.
Wendy’s has a 50-unit development deal with AJ Group to develop 50 new restaurants in Mexico City and the states of Hidalgo, Mexico and Morelos, the news release said. Another operator, WS Pacific, will develop 12 Wendy’s restaurants across the states of Sinaloa and Durango.
Founded in 1969, Wendy’s has more than 7,000 restaurants worldwide. It is based in Dublin, Ohio, a Columbus suburb.
La Madeleine and Shipley Donuts Menu Items
These restaurant brands made a splash with menu announcements:
- La Madeleine on March 4 launched an all-day brunch menu with sandwiches, French toast dishes and $5 mimosas every day during regular operating hours, Franchising.com reported. The French-influenced brand’s artisan sandwiches feature hand-carved meat; the specialty French toasts (including crème brulee and hot honey ham versions) are made with extra-thick and fluffy bread slices.
- Also on March 4, Shipley Donuts began celebrating St. Patrick’s Day with baked doughnuts themed for the Irish holiday. The Houston-headquartered brand said in a news release that its Lucky Dozen doughnuts will be available only for two weeks. The St. Paddy’s treats are frosted with white, green or chocolate icing and topped with white and gold sprinkles, plus petite shamrocks.
