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franchising

Financing

Hooters kicks off U.S. growth push with free royalties for franchisees

The chain is offering new operators 40 weeks of free royalties as it celebrates its 40th birthday.

Financing

Teriyaki Madness is not calming down

The fast-casual bowl chain has been one of the country’s fastest-growing restaurant concepts in recent years. And now it has a potential new funding source for its franchisees.

Rice Enterprises, a longtime operator out of the Pittsburgh area, filed for Chapter 11 bankruptcy less than two years after it was sued over the rape of a 14-year-old employee by one of its managers.

The Bottom Line: Franchisees in particular jumped at the chance to scoop up restaurants in 2021, often paying sky-high multiples in the process. And then inflation hit.

The Bottom Line: Robert Zarco, who now works with McDonald's franchisees, argues that a potential redefinition of the joint employer standard could reduce the level of control franchisors exert over operators.

The former CDO of Chipotle will join the fast-food chain's senior leadership team as part of growth acceleration strategy.

Operators, saying they're being "held hostage" by customer survey standards and new ownership requirements, have hired an attorney and may influence franchise regulations. The company says it just wants to run good restaurants.

A former owner of the Carolina Panthers NFL team, the North Carolina native made his money as a Hardee's franchisee. He would later operate Quincy's, Denny's and El Pollo Loco, among other restaurant brands.

The agency is seeking comments on franchisors' business practices and the control they exert over franchisees and their employees, potentially setting the stage for changes in franchise regulations.

Fast-food restaurants are not advertising the type of mass discounts that marked past downturns. Instead, they’re flooding apps with deals. And franchisees have started to push back.

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