1) Complaints Mount at Ellie Mental Health as Franchisees Claim They Were Misled

Ellie Mental Health, which in August 2022 touted the sale of 400 units in less than a year since its franchise launch, is facing backlash from current and former franchisees who say they were misled about the financial viability of the model and Ellie’s value proposition.

More than 20 franchisees operating 30-plus clinics are working with Minneapolis law firm Dady & Gardner as they explore legal options including termination of their franchise agreements and possible litigation against the franchisor, said attorney Serena Chiquoine.

Franchisees were sold a “clinic in a box” with a passive or semi-absentee owner model, Chiquoine said, and were told the franchisor would handle administrative services including billing, credentialing of clinicians by medical insurers and a call center, but the reality of those shared services fell far short. Franchisees were then presented with financial performance representations during the sales process by Rep’M Group, the outside franchise sales firm Ellie hired, that inflated the insurance reimbursement rates clinics could expect.

2) AAFD Is Lobbying Lawmakers for State, Federal Franchise Changes

As lawmakers convene around the country at capitol buildings, the American Association of Franchisees & Dealers is making an effort to advance a number of bills.

In the United States Congress, the AAFD is looking to get a bill moved through the House of Representatives providing private of right of action on violations of the Federal Trade Commission’s Franchise Rule. Introduced last session by U.S. Rep. Jan Shakowsky, D-IL, the law would allow franchisees the right to sue a franchisor on disclosure grounds.

The legislation would also allow the franchisee to seek additional equitable relief, including recission and recovery on items such as the cost of the lease or loan obligations. In addition to the AAFD, the bill has garnered the endorsement of the Coalition of Franchisee Associations.

3) We Sell Restaurants Announces the Formation of its Advisory Board

We Sell Restaurants is announcing the formation of its Franchise Advisory Board. This group of business leaders bring extensive franchise industry expertise. 

“This new Advisory Board is going to play a pivotal role in taking We Sell Restaurants to the next level,” said Robin Gagnon, CEO & Co-Founder of We Sell Restaurants. “It is important as a brand that we do not get complacent in our success and strive to improve and advance for the benefit of our franchisees, restaurant owners, and aspiring entrepreneurs.”

EXTRA SAUCE 💥

Sandbox VR Inks Multi-Unit Deal to Develop Manhattan: Investment firm JLG Ventures has established itself as a more-than-capable operator in New York City with several restaurant concepts.

The next step in building its portfolio was diving into entertainment, and it found a partner in the virtual reality brand Sandbox VR. The group signed a deal to open three New York locations, with the first expected to open in Manhattan this fall.

JLG Ventures, helmed by president Carolyne Chan, also partially owns a pair of bar concepts in Double Chicken Please and Sinsa, as well as the restaurant Raku and bakery brand Patisserie Fouet, all in New York. The latest addition, Chan said, had been on the firm’s radar for a few years.

Razzamataz Goes International with Expansion into Ireland: In an exciting development for Razzamataz Theatre Schools, long-standing franchisee Jessica Chandler-Smith is making history by becoming the brand’s first Master Franchisee.

Jessica first joined the Razzamataz network in 2017, opening Razzamataz Brentwood with a vision to provide young people with incredible performing arts opportunities while supporting their mental health, something that she is passionate about. Fast forward to today, and her dream has multiplied, she now manages seven locations across Essex alongside her dedicated team. This year, Jessica embarks on her biggest venture yet: launching Razzamataz Ireland.

Jessica’s ties to Ireland run deep, with Irish roots on her mother’s side and a passion for the country’s vibrant culture. However, it was her son Dawson’s love for Irish dancing that truly strengthened her bond with the country.

Dave’s Hot Chicken & Qdoba Franchisees Signs 23-Unit Deal with PayMore: PayMore Stores has announced a 23-unit franchise agreement with The Integritty Group (TIG). The new locations will expand the PayMore brand into Delaware, New Jersey, New York, Pennsylvania and Florida.

The Integritty Group, led by founders Pranav Desai, Jiger Patel, Raj Mahadevia, and Manisha Patel, bring experience in developing and scaling multi-unit operations. TIG’s impressive portfolio spans across various markets, including fast-casual and full-service restaurants. The group’s decision to invest in PayMore marks its first non-food venture.

Twin Peaks Announces New Multi-Unit Growth Push into Dakotas and Montana: Twin Peaks Restaurant is expanding its footprint in the Great American West with a five-unit development deal with its newest franchisees, Arun Ramalingam and Priya Magudeswaran. The husband-and-wife duo, experienced multi-unit franchisees with a proven track record in the restaurant industry, will introduce the Dallas-based brand to South Dakota and Montana in addition to growing the popular sports lodge in North Dakota.

“Joining Twin Peaks is an exciting opportunity, and we’re eager to bring its unique dining experience to these three states,” said Arun Ramalingam, co-franchisee. “We see tremendous growth potential in these markets and are dedicated to establishing vibrant, memorable experiences for all our guests.”

A&W Restaurants Names Amanda Potts Vice President of Marketing and Innovation: A&W Restaurants announced today Amanda Potts as vice president of marketing and innovation for A&W Restaurants. Potts is a seasoned marketing professional with more than 20 years of experience and a proven track record for implementing impactful marketing programs that support franchise growth, increase brand awareness and deliver measurable results for sustainable development and success.

“A&W Restaurants has more than 105 years of stories we aren’t done telling. The iconic brand continues to grow, evolve and adapt with its guests, while remaining true to its rich history. As I join the A&W team, I’m dedicated to honoring the history that makes the brand unique and sharing new ideas, marketing strategies, and communications plans to take the brand to new heights and engage new audiences,” said Potts. “I’m honored to be a part of an organization with a strong foundation of loyal customers, passionate franchise partners, and a leadership team dedicated to A&W’s success.”

Konala Secures Back-to-Back Multi-Unit Deals, Expanding into Montana and Utah: Konala signs two multi-unit deals bringing the brand to Montana and Utah.

Both deals were signed within the same week.

Leading the expansion into Utah is Tyson Adams, a former district manager for multiple Jersey Mike’s Subs locations, who has signed a five-unit deal to develop Konala in the state. 

The Montana deal is spearheaded by Eric Garside, a longtime franchisee with Snap-on Tools, who saw firsthand the demand for healthy, fast options. Constantly on the road, Garside relied on Konala for nutritious, high-protein meals.

16 Handles Announces Fred Frey as VP of Franchise Development: National frozen dessert brand 16 Handles has named Fred Frey as its new VP of Franchise Development.

 Most recently, Frey served as Director of Franchise Development at Shipley Do-Nuts, where he played a key role in the company’s largest expansion to date, securing 117 franchise agreements in 2024 alone. Prior to that, he was Franchise Development Manager for iced tea brand HTeaO, leading its expansion into 12 states and adding more than 300 franchise agreements to its pipeline in just over two years.  Frey’s expertise in franchise growth is complemented by a decade-long career in banking and finance with Wells Fargo and Merrill Lynch.

PureGym completes acquisition of Blink Fitness London: Pinnacle US Holdings LLC, a subsidiary of PureGym Limited (“PureGym” or “The PureGym Group”), a leading global gym operator, today announces the completion of its acquisition of Blink Fitness’ (“Blink”) corporate operations and a significant number of locations in New York and New Jersey for $121m in cash.

Humphrey Cobbold, Chairman of PureGym, commented: “The conclusion of this sale process marks an important step, both in Blink’s journey to strengthen its long-term financial health and in our ambition to develop a strong position in the U.S. market. Following our international success todate, we can now accelerate our growth in the world’s largest and most dynamic fitness market – a hugely exciting prospect.”

Jollibee Launches Its Franchising Program in the U.S.: Jollibee announced the launch of its first franchising program in the U.S. Best known for its mouth-watering Chickenjoy fried chicken, chicken sandwiches and other delicious menu items, the quick-service restaurant (QSR) chain is the flagship brand of Jollibee Foods Corporation (JFC), also known as the Jollibee Group.

The U.S. fast-food market is one of the largest in the world, with Americans spending billions annually on fast food. Within this market, there is a growing demand for alternatives to the traditional American fast-food and QSR chains. Jollibee’s ability to offer an innovative and distinct menu places it in a favorable position to capitalize on the growing demand for diverse and exciting options. Jollibee’s competitive pricing structure also appeals to value-conscious consumers, adding to its strong potential for sustained sales.