franchising

Emerging Brands

5 pre-emerging restaurant brands ready for takeoff

These small concepts are still proving out their ideas, but each shows promise as a potential candidate for the next generation of emerging chains.

Operations

Flynn Group makes another international acquisition

Flynn Group LP has acquired Wendy's restaurants in New Zealand. The largest franchise operator in the world, Flynn already owns rights to develop the burger brand in Australia.

After closing 14 units last year, the fast-casual burger chain continued "right-sizing" its portfolio in the first quarter, when its same-store sales plunged 13%.

George Michell, who owns some of the brand’s most successful locations, claims the company is using its new franchising standards to force him to sell his restaurants.

The fast-food giant, which has shifted its focus to value, is working to convince franchisees to go along with a bundled meal featuring a McChicken or a McDouble. The plan is expected to pass.

The platform company this week acquired the brands Taim Mediterranean Kitchen, Hot Chicken Takeover and Sigri Indian BBQ. And more are in the works.

The trade group is calling for changes in disclosure rules before people buy a franchise. It comes as federal regulators examine rules for franchise companies.

The Bottom Line: Burger King is spending $550 million to get more of its restaurants remodeled, not counting its own upgraded restaurants. More brands should do this.

The president declined to sign off on a bill that would have scuttled an effort to make franchisors jointly liable for their franchisees’ workers, sending the issue back to Congress.

Operators have closed or rebranded nearly half of the chain’s locations over the past year and a half. And then as the chain was sold last week, franchisees were told the company lost its distribution contract.

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