Franchise Deal News Includes Vast, Logan’s Roadhouse, FAT Brands and McDonald’s
- In a deal closing later this year, Monomoy Capital Partners will acquire Jiffy Lube from its owner, Shell USA Inc.
- New State Capital Partners has bought the Vast Coworking Group franchise. Vast’s brands are Venture X, Office Evolution and Intelligent Office.
- SPB Hospitality has sold Logan’s Roadhouse to SSCP Management, which owns Cicis Pizza, Corner Bakery and Roy’s; it also operates Applebee’s and Sonic franchises.
- Under a court-mediated agreement, FAT Brands CEO Andy Wiederhorn will step down during the multi-brand restaurant franchisor’s bankruptcy proceedings.
- McDonald’s value-pricing strategy is working, so in April, it will launch offerings that include a $3-and-less menu and $4 breakfast combos.
An affiliate of private equity firm Monomoy Capital Partners will acquire Jiffy Lube International Inc. from Pennzoil Quaker State Co. (part of Shell USA Inc.) for about $1.3 billion. Founded in 1979, Houston-based Jiffy Lube has more than 2,000 North American auto service franchise locations that perform oil changes, brake maintenance, battery and tire services, and more.
A Monomoy news release stated that Jiffy Lube will operate as a standalone entity after the acquisition is completed by the second half of this year. Jiffy Lube will benefit from Monomoy’s history of providing operational support to branded retailers and automotive aftermarket businesses, the news release added.
Monomoy Capital Partners manages $5.3 billion-plus in assets across a family of investment funds. The private equity firm invests in manufacturing, distribution and services companies across North America’s industrial and consumer product sectors.
New State Capital Acquires Vast Coworking
New State Capital Partners announced in early March that it acquired the Vast Coworking Group franchise from United Franchise Group. Vast operates three brands – Venture X, Office Evolution and Intelligent Office – that provide 2.7 million square feet of flexible workspaces. Terms of the deal were not disclosed.
Co-founded about four years ago by Jason Anderson, Florida-based Vast has built a network of more than 200 locations in and outside the U.S. He will continue to serve as CEO.
In a news release, Anderson praised New State for bringing in experience and a commitment to Vast’s growth. And Daniel Han, senior principal at New State, said he sees “significant opportunity for continued expansion” in the coworking marketplace. Han pledged to strengthen franchisee support and enhance member services while growing Vast.
Logan’s Roadhouse Changes Hands
Restaurant Business reported that SPB Hospitality has sold Logan’s Roadhouse brand to SSCP Management, which owns Cicis Pizza, Corner Bakery and Roy’s and also operates dozens of Applebee’s and Sonic restaurants. Terms of the deal were not disclosed.
SSCP – partnering with Gala Capital – acquired Cicis and Corner Bakery out of bankruptcy in 2021 and 2023 respectively. The online publication said SSCP had worked to rejuvenate those restaurants with promising results so far. SSCP may hope to revive Logan’s, too; it has experienced sales declines and shuttered 11 locations.
By selling Logan’s, Houston-based SPB said it can concentrate on its upscale-casual, non-franchise brands. SPB also owns the fast-food chain Krystal, which – like Logan’s – includes corporate- and franchisee-owned restaurants.
FAT Brands CEO on Leave
FAT Brands CEO Andy Wiederhorn will step down during bankruptcy proceedings and a potential sale of the restaurant franchisor’s assets. The leave was a condition of a mediated court settlement by FAT Brands, its investors and a committee overseeing the bankruptcy, Nation’s Restaurant News reported Friday, March 20. Other Wiederhorn family members will be terminated from positions in the company under the agreement.
Until most or all of the company’s assets are sold or until a Chapter 11 bankruptcy plan is finalized in the coming weeks, Wiederhorn and his family must withdraw from any actions affecting the company. He will, however, be allowed to bid on the company during the sales process, according to a RestaurantDive.com article.
Creditors have sought Wiederhorn’s removal since February, after they learned that he oversaw the completion of a stock sale of Twin Hospitality without court approval, RestaurantDive.com noted in its article. An interim CEO, as yet unannounced, will lead the company throughout bankruptcy proceedings.
The next hearing on the FAT Brands bankruptcy, prompted by the franchisor defaulting on some $1.3 billion in debt, is scheduled for April 8. The umbrella franchisor’s brands are Fatburger, Fazoli’s, Great American Cookies, Johnny Rockets, Marble Slab Creamery, Round Table Pizza and Twin Peaks.
McDonald’s Doubles Down on Value Deals
McDonald’s will debut a $3-and-under menu and $4 breakfast deals starting in April, The Wall Street Journal reported on March 11. “[We] remain committed to meeting ever-changing customer needs,” McDonald’s said in a message to franchisees that was shared with The Journal. In February, CEO Chris Kempczinski had told investors and the news media that the value-pricing strategy was working.
McDonald’s affordability reputation suffered after franchisees raised prices during the pandemic. Surveys indicated consumers felt McDonald’s lagged in value. In response, the fast-food megabrand has rolled out its McValue program and offered an array of value-priced meals as well as bonus-buy $1 items for about 15 months.
One of the new $4 breakfasts will be a McMuffin, hash browns and coffee combo. The $3-and-less menu, which will replace the $1 bonus buys that began last year, will include a sausage biscuit or a four-piece Chicken McNuggets.
