Private Equity Activity, Consumer Shifts and Strong Unit Economics Are Driving Deal Momentum
It may be winter, but PE activity across the franchise community is already hot.
According to a Citizens Financial survey of 400 companies, 58% of executives at middle-market establishments and private equity firms are optimistic about mergers and acquisitions this year and expect volume to rise.
The same applies to investment activity in franchising. 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.
She should know. As the author of Big Money in Franchising: Scaling Your Enterprise in the Era of Private Equity, Miller said longer holds among PE-backed investments now account for some 31,000 businesses. That makes today ripe for movement.
I second that opinion, as our team at Thunderly Marketing announced two significant transactions in under 48 hours this January.
WellBiz Brands, Inc., the platform company for Drybar, Elements Massage, Fitness Together, Amazing Lash Studio and Radiant Waxing, was acquired by Transom Capital Group.
And Mr Gatti’s Pizza, the iconic Texas-based restaurant network, was acquired by new majority-owner OneRyan Global LLC.
One multi-brand franchisor with more than 700 locations by a PE firm. One single-brand franchisor with some 240 units open and in development by a family firm, philanthropist and multi-unit franchisee of the brand.
One in the health, wellness and fitness sector where consumers are wholeheartedly spending on themselves in growing numbers. One in the food sector that has been offering affordable dining and fun for the whole family for more than six decades.
What does this say about investments at large in 2026? The money is there. Industries are varied. And strong unit-level economics in today’s environment are gaining interest.
Wellness Isn’t a Resolution. It’s a Business Case.
While we await this year’s economic report from the International Franchise Association (IFA), it’s not lost on me that personal services made the No. 1 sector for growth in IFA’s 2025 Franchising Economic Outlook. So who’s surprised WellBiz was being vetted by serious suitors investigating winning brands?
Upon closing the deal, Conor Davenport, managing director at Transom, called WellBiz “a highly attractive franchise platform with strong brands, loyal members, and a scalable business model.”
WellBiz CEO Amanda Clark added, “Together with Transom, WellBiz is well positioned to continue its momentum with existing and new franchisees, and to enhance the guest experience through high-quality service and operational excellence.”
Following a year of significant franchise development across the platform, WellBiz has plans to award an additional 150 agreements in 2026 with new and existing franchisees.
Single-Brand Franchisor Investments are Tasty, Too.
Jim Phillips, CEO of Mr Gatti’s, called OneRyan’s enormous respect for the heritage of the business special for the deal.
Amanda S. Ryan, CEO of OneRyan and now vice-chair of the board for Mr Gatti’s, said, “Our deep appreciation for the Mr Gatti’s brand, combined with our firsthand experience operating locations across multiple markets, made this acquisition a natural and exciting opportunity. Mr Gatti’s has built a category-leading platform in dining and family entertainment, supported by an exceptional network of franchisees. We look forward to helping the brand continue to grow and thrive.”
Think beloved brand, remodels, resales and even new units. That’s strong validation for an organization that continues to persevere in an environment where “newstalgia” resonates with consumers.
Oh, yes, and about today’s consumers…
These deals, and I suspect many more that follow, will continue to be attractive to investors drawn to brands that have figured out the needs of today’s bifurcated consumer base. That includes franchise brands experiencing strong gains by offering value options for today’s cash-strapped consumers as well as brands offering premium experiences for those with disposable incomes.
According to Reuters, dealmaking has gathered pace in the U.S. with a resilient economy, lower financing costs, and renewed corporate confidence driving activity. This follows comments from Goldman Sachs’ CFO, who cited a 40% industrywide jump in deal volume heading into 2026.
Happy New Year to the returns on those investments.
