Franchisors start giving breaks on remodels

Yum Brands, Wendy’s and Huddle House are among franchisors letting franchisees delay capital projects.


With plummeting sales, franchisees face a brutal future

The coronavirus shock is putting considerable pressure on franchisees large and small, and franchisors are already taking steps to ease the problem.

The fast-growing sub chain is investing $75,000 per franchised store to foster growth, even as it adds topspin by gifting restaurants to employees yearning to become owners.

The latest dispute between the brand and its operators south of the Canadian border centers on the prices franchisees pay for critical supplies.

ICV completed its purchase of Diversified Restaurant Holdings in a deal valued at $180 million.

The company is also slowing down on acquisitions as it looks to build up its profitability.

The chain has closed 107 units, with plans to reopen them with a counter-service model to save on labor.

A management overhaul and major layoffs signal a sense of urgency, but renewed complaints from operators over a new discount show the chain has a ways to go, says RB’s The Bottom Line.

The acquisition will combine a major lender to restaurants with an investment bank that has closed more than 500 deals in the industry.

The company believes buying up franchisee restaurants will improve performance, but there are steep risks, says RB’s The Bottom Line.

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