Financing

MOD Pizza's new owner plans to refranchise its company-owned restaurants

Elite Restaurant Group said it has hired a specialist to assist with a comprehensive effort to sell locations nationwide to franchise operators.
MOD unit
MOD Pizza had 423 company-owned units when it was acquired in July. | Photo courtesy of Elite Restaurant Group.

MOD Pizza’s new owner is looking to refranchise its company-owned restaurants.

Elite Restaurant Group on Thursday announced it has hired National Franchise Sales (NFS) to lead a “comprehensive refranchising effort of their locations nationwide” as part of a strategic growth and restructuring initiative.

The 512-unit fast-casual pizza chain was acquired by Elite in July in a deal that was widely believed to have saved the chain from impending bankruptcy.

At the time of the acquisition, the Bellevue, Washington-based MOD operated about 423 units (another 89 were franchised). MOD had closed about 44 underperforming locations prior to the deal.

NFS did not immediately respond to questions about the number of units Elite hopes to sell to franchisees.

The announcement described Newport Beach, California-based Elite as an ownership group “comprised of experienced investors and operators” in the restaurant and hospitality industry, led by Michael Nakhleh.

Nakhleh said in a statement the company is committed to enhancing MOD’s operations, expanding its footprint and elevating the customer experience.

“NFS’s expertise in refranchising, asset recovery reorganization, and franchise sales makes them the ideal partner to help us optimize MOD Pizza’s market presence and operational efficiency,” Nakhleh said. “We are confident that their strategic approach will be instrumental in identifying the right franchise partners to grow the MOD Pizza brand.”

Elite has also declined to respond to requests for more information.

The company has been known as a collector of financially troubled restaurant brands over the years, including Slater’s 50/50, Project Pie, Patxi’s Pizza, Marie Callender’s and Gigi’s Cupcakes. But it’s not clear whether Elite still owns or operates those brands.

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