Under the proposed merger between two large Indian Yum Brands franchisees, Devyani International will issue 177 shares for every 100 shares held in Sapphire Foods.
Sapphire Foods India plans to merge with Devyani International, a move that is expected to consolidate the two largest Indian franchisee operations of Yum Brands-owned chains KFC and Pizza Hut. Under the proposed merger, Devyani International will issue 177 shares for every 100 shares held in Sapphire Foods, the company said. The full integration of the two entities is expected to be completed 15 to 18 months from the effective date of the merger. Ahead of the transaction, Arctic International will acquire 18.5 percent of Sapphire Foods’ paid-up equity capital from the existing promoters with the option to later assign this stake to an investor. As part of the approval, Devyani International agreed to several important commercial terms with Yum Brands. These include long-term enhancements of certain waivers for KFC and Pizza Hut that are aimed at supporting store expansion and ensuring sustainable growth for both brands. In addition, Devyani will acquire 19 KFC restaurants operated by Yum India in Hyderabad. The company will also pay a one-time charge to Yum India toward merger approval and the license fee for the additional territory.
Midas International acquired Max Auto Supply Company, the largest dealer within the Midas system. Founded in 1958 and headquartered in Toledo, Ohio, Max Auto operates 111 Midas franchise locations and has more than 650 employees in Ohio, New York, Pennsylvania, Michigan, Kentucky and Georgia. Max Auto will maintain its headquarters in Toledo and continue to operate as a standalone business, led by Vice President Randy Lindhurst. Midas operates more than 1,200 locations in the United States and Canada. The company has a portfolio of auto service center brands, including Mavis Discount Tire, Mavis Tires & Brakes, Midas, Express Oil Change & Tire Engineers, Brakes Plus, Tire Kingdom, National Tire & Battery, Town Fair Tire and Tuffy.
Former WNBA star and now team owner and executive Renee Montgomery invested in The Sports Bra, a sports bar franchise focused on women’s sports. Montgomery, the vice president and part owner of the Atlanta Dream, is also the strategic creative adviser for The Sports Bra. She won two WNBA championships with the Minnesota Lynx, in 2015 and 2017. Founded in 2022 in Portland, Oregon, and with one location open, The Sports Bra started franchising in 2024 and has agreements signed for new locations in Boston, Indianapolis, Las Vegas and St. Louis. In 2024 it attracted an investment from Reddit co-founder Alexis Ohanian’s venture capital firm, the 776 Foundation. Ohanian is married to tennis legend Serena Williams.
New York-based investor group Brightwood Capital Advisors acquired Museum of Illusions from Invera Capital Partners, which is based in Croatia, for an undisclosed amount. Founded in 2015, Museum of Illusions has nearly 70 locations across 27 countries that feature an array of interactive optical illusion exhibits. Brightwood’s investment will support entry into new markets this year, including Sacramento and San Francisco, California, London and Birmingham in the United Kingdom, and Miami, according to the announcement. Additionally, as part of the transaction, five franchised locations in Boston, Chicago, Pittsburgh, Philadelphia and Scottsdale, Arizona, will transition from Museum of Illusions’ largest franchisee, LOL Entertainment, to corporate-owned locations. As part of the new ownership structure, Brightwood and Constitution Capital Partners are now the primary shareholders of Museum of Illusions, while Invera Equity, an equity fund management company, and LOL Entertainment will continue to hold minority stakes. Aviara Partners and BNP Paribas Securities Corp. served as advisers to Brightwood in the transactions and Winston & Strawn served as legal counsel.
Planet Fitness announced that it entered into a $350 million accelerated share repurchase agreement with Citibank. The company will acquire shares under the agreement as part of its $500 million share repurchase authorization announced June 13, 2024. As of December 15, about $350 million remained available for share repurchases pursuant to the 2024 share repurchase program. Pursuant to the agreement terms, the company will pay the bank $350 million in cash and will initially receive nearly 2.5 million shares of the company's Class A common stock, which is about 80 percent of what it expects to repurchase under the ASR Agreement. The company also announced that its board of directors authorized a new share repurchase program of up to $500 million, contingent upon and effective at the completion of the ASR Agreement, to replace the existing 2024 Share Repurchase Program.
Planet Fitness also announced that it completed the refinancing of the new series of securitized notes consisting of $750 million Class A-2 Senior Secured Notes issued in two tranches: the Class A-2-I senior secured notes with an anticipated repayment date of five years with a principal amount of $400 million and a fixed interest rate of 5.27 percent per annum, payable quarterly; and the Class A-2-II senior secured notes with an anticipated repayment date of seven years, with a principal amount of $350 million and a fixed interest rate of 5.65 percent per annum, payable quarterly. The 2025 notes include a revolving financing facility that allows for the issuance of up to $75 million in variable funding notes, in addition to the existing $75 million 2022-1 variable funding senior secured notes, Class A-1. As of the closing, none of the variable funding notes have been drawn.
The Joint Corp., the franchisor of chiropractic care brand The Joint Chiropractic, signed an asset purchase agreement for the sale of 22 corporate-owned or managed clinics for $1.5 million to three buying groups. An existing franchisee who owns eight other clinics in North Carolina will acquire nine clinics—seven in Virginia, one in North Carolina and one in South Carolina. Another buyer group, a chiropractor who has worked within the system for almost 10 years and his business partner, will purchase 10 clinics in North Carolina. The other three clinics—two in Georgia and one in South Carolina—will be purchased by a team of two chiropractors. In December, the buyers assumed business operations via management service agreements until the lease reassignments will be completed to permit ownership transfer. Separately, The Joint announced it delivered a notice to terminate an asset purchase agreement for 45 corporate clinics in Southern California signed November 2. Elite Chiro Group, which agreed to buy the clinics for $4.5 million, failed to meet closing conditions, according to an 8-K securities filing by The Joint.
Club Pilates is the largest brand by unit count for Xponential Fitness. It passed the 1,000-unit mark in 2024. Aligned Fitness completed four add-on acquisitions comprising 13 studios, which expands the company's Club Pilates footprint across North Carolina, South Carolina and Georgia.
Club Pilates franchisee Aligned Fitness completed four add-on acquisitions comprising 13 studios, which expands the company's Club Pilates footprint across North Carolina, South Carolina and Georgia. The company, backed by Eagle Merchant Partners, bought groups that include single studios in Pinehurst, North Carolina; Athens, Georgia, seven studios in Charlotte, North Carolina, and four studios in Atlanta. The additions bring Aligned’s platform to 47 locations.
Citizens Capital Markets & Advisory served as the exclusive financial advisor to Hot North Chicken, a leading franchisee of Dave’s Hot Chicken, on its sale to a confidential party. Hot North Chicken operates 10 restaurants in Toledo, Ohio, and Detroit.
Krispy Kreme reached an agreement with Unison Capital to purchase its operations in Japan, with the transaction projected to close in the first quarter. Cash proceeds from this transaction are estimated at $65 million. Proceeds from the agreement are expected to be used for debt pay down, after transaction-related fees and expenses. Krispy Kreme operates 89 locations and nearly 300 fresh delivery points of access across Tokyo, Osaka and other major Japanese cities. Unison was founded in 1998 and specializes in consumer, healthcare and B2B services. It raised approximately $5 billion in assets across six funds in Japan and three funds in South Korea.
Navpreet Ahluwalia bought the Pak Mail locations in Stockton and Lodi, California. Ahluwalia is the daughter of the former owners. In a separate transaction, Scott Kodak and Chad Wicks bought an existing Pak Mail location in Austin, Texas. Headquartered in San Diego, Annex Brands licenses and franchises more than 800 locations across the United States, Canada and Mexico. Its brands include PostalAnnex, Pak Mail, AIM Mail Centers, Parcel Plus, Sunshine Pack & Ship, Navis Pack & Ship and Handle With Care Packaging Store.
Prateek and Ajit Patel, uncle and nephew and co-owners of Kiddie Academy units in Cornelius and Lake Norman, North Carolina, are the new owners and operators of Kiddie Academy of Asheville, having acquired the North Carolina location upon the previous owner’s retirement. Kiddie Academy has more than 350 locations in 40 states and the District of Columbia.
Todd Carpenzano and Tiffany Vann bought Caring Transitions of Charleston, South Carolina.
Restaurant lender Pinnacle Financial Partners led a $70 million financing for WKS Restaurant Group, which owns nearly 400 Denny’s, El Pollo Loco, Wendy’s and Krispy Kreme restaurants, according to Franchise Times sibling publication Restaurant Finance Monitor. Fifth Third Bank and Cathay Bank participated in the transaction, which consisted of real estate refinancing and a development line of credit for acquisitions and new unit development. Pinnacle announced its merger with Synovus Bank, which also has a restaurant finance group—which is expected to close in the first quarter of this year.
Pickleball Kingdom franchisees Yashraj Kurani and Dip Jadawala acquired the eight-court The Pickle Jar in Hillsborough Township, New Jersey, with plans to rebrand and upgrade the facility.
A pair of Pickleball Kingdom franchisees acquired an eight-court The Pickle Jar in New Jersey.
Consolidated Cleaners, one of Tide Services’ largest franchisees, acquired seven Widmer’s Cleaners locations across the Cincinnati metropolitan area. Led by Robert Lyons, Jonathan Kassolis, Mariel Licausi, Duke Kassolis and Alton Scavo, Consolidated Cleaners owns and operates 42 Tide Cleaners locations and more than 50 delivery routes in five states. Tide Services is the Procter & Gamble subsidiary behind the Tide Cleaners and Tide Laundromat franchises.
Boxwood Partners served as the financial adviser to Prime IV Hydration & Wellness on senior secured financing from Lafayette Square. Founded by Amy Neary, Prime IV has more than 155 locations. The financing from Lafayette Square will provide Prime IV with additional capital to support strategic priorities, including enhancing operational infrastructure, strengthening franchisee support systems, investing in brand awareness and accelerating innovation across its service offerings. The deal was led by Boxwood Managing Director Patrick Galleher, director Dan Martinson and analyst Will Drawdy.
Minuteman Press franchisee Barry Pottinger rebranded Wilpro Printers in Boksburg, South Africa, after acquiring the 31-year-old business from Willie and Petro Viljoenin Boksurg, who retired. The acquisition closed January 1, and the business is now operating under the Minuteman Press Boksburg name.
Jason Jordan bought the SpringGreen location in Eau Claire, Wisconsin, to bring his portfolio of the lawn, tree and pest control brand to six territories and become its largest franchisee. In a separate transaction, Jason Sismilich, a Navy veteran and owner of Alpine Lawncare in Chesapeake, Virginia, acquired the SpringGreen in Portsmouth, Virginia.
Franchise Equity Partners partnered with Reliable Residential, the largest franchise operator in the Neighborly system, to acquire ACG Smith Texas. The deal includes Precision Garage Door Service locations serving Dallas-Fort Worth, and Palo Pinto, Texas, and builds on a series of strategic investments that have expanded Reliable Residential's national footprint. The combined portfolio now includes Precision Garage Door Service locations in Clearwater, Orlando, Ocala and Jacksonville, Florida; Columbus, Ohio; Oklahoma City and Tulsa, Oklahoma; and Phoenix and as well as Mr. Rooter Plumbing of Tampa, Florida.
In a separate transaction, Franchise Equity Partners made a minority investment in Roger S. Penske Jr.'s SoCal Penske Dealer Group, which includes 10 franchises representing a mix of leading foreign and domestic car dealership brands. The transaction marks FEP’s first automotive investment in California, bringing valuable geographic diversification to its existing automotive portfolio, which currently includes dealerships in the greater New York metropolitan area, Pennsylvania, the Carolinas and Virginia. It also expands FEP’s presence within the Honda and Toyota networks, while establishing a presence in California, the biggest market for automotive sales.
The Human Bean in Avondale, Arizona, is under the new ownership of Jeff and Kelly Walters. They also own another Human Bean drive-thru coffee location in Phoenix. Founded in 1998 in Ashland, Oregon, Human Bean has 260 locations open or in development in 24 states.