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From Chaos to Crust

1) Ellie Mental Health to Sell All Corporate Clinics Amid Franchisee Disputes

Minnesota-based Ellie Mental Health finalized an agreement to sell its 25 company-owned clinics to Nystrom & Associates, an outpatient mental health provider. Ellie CEO Michael DiMarco announced the deal to franchisees in an email May 14.

“By transitioning the Minnesota locations, we will be able to focus 100% of our resources, energy, and expertise on supporting you—our valued franchisees. This move ensures that every investment we make moving forward is dedicated to strengthening your franchised clinics, enhancing your tools and services, and fueling your long-term growth,” DiMarco wrote in the email reviewed by Franchise Times.

The sale comes amid ongoing tensions with franchisees, who say they were sold on the model as a “clinic in a box” but were misled about the franchise’s financial viability and Ellie’s value proposition. A handful of C-suite leaders have also left the company

2) Donatos Pizza To Open Fully Autonomous Restaurant in Partnership with Appetronix

Donatos Pizza, the premium pizza company famous for its abundant Edge to Edge® toppings, is opening its first fully autonomous pizza restaurant in June. Donatos and its sister company Agápe Automation partnered with Appetronix to bring the robot operated restaurant to life. The new fully automated restaurant will debut before security in front of Concourse B at the John Glenn Columbus International Airport and will be operated by restaurateur HMS Host. The new autonomous kitchen will deliver a fast and delicious made-to-order pizza for travelers.

“We’re not just adding tech to a restaurant; we’re jumping in with a fully autonomous restaurant. But, most importantly, we’re going to continue to serve great tasting abundantly topped pizzas and provide a top-notch customer experience that Donatos has always been known for,” said Kevin King, President and CEO of Donatos Pizza. “In a busy airport environment, where customers are most focused on catching their flights, we think the vending machine style location will be a huge success.”

The autonomous restaurant will operate 24/7, leveraging state-of-the-art robotics and data science technologies — enabling an efficient experience for customers on everything from placing orders to receiving their pizza. The robot also offers an engaging visual experience, allowing customers an inside look at their pizzas being freshly prepared in real time.

3) PrimoHoagies Surpasses Milestone with 125th Franchise Opening

PrimoHoagies is proud to celebrate a major accomplishment with the Grand Opening of its 125th location on Thursday, May 29 in Perkiomenville, PA. Located at 1461 Gravel Pike and owned by Niko DaSilvio, this opening represents more than just a new store—it’s a defining moment in the franchising industry.

“Since becoming CEO in 2019, reaching 125 franchised locations has been a development goal I set my sights on from day one,” said Nicholas Papanier Jr., Owner, President & CEO of PrimoHoagies. “This achievement in Perkiomenville is more than just another opening—it’s proof that when you stay committed to quality, tradition, and a relentless work ethic, growth follows. We’re building something really special, and we’re just getting started.”


EXTRA SAUCE 💥

Bankruptcy Court Approves On the Border’s Sale to Pappas Restaurants: A bankruptcy court approved the sale of On the Border Mexican Grill & Cantina to Pappas Restaurants, a Texas-based restaurant group.The operator owns about 90 restaurants under the brand names Pappadeaux Seafood Kitchen, Pappasito’s Cantina, Pappas Bar-B-Q and more. Pappas was the prevailing bidder in the On the Border auction. Salud Brands was the designated backup bidder.

The United States Bankruptcy Court in the Northern District of Georgia approved On the Border’s sale to Pappas May 15. On the Border’s portfolio includes 60 U.S. stores and 20 South Korean stores.

On the Border filed for bankruptcy in March, citing about $25 million in debt, following the closing of about half of its restaurants earlier this year. OTB Holding, On the Border’s former parent company, filed for Chapter 11 protection.

McDonald’s CosMc’s Shuts Down After Test Run: Drive-Thru Drink Concept Ends Following 18-Month Trial in Limited Market. The party is over for McDonald’s CosMc’s, the beverage-centric, drive-thru-only spinoff. The fast-food giant disclosed Friday that it was pulling the plug on the five remaining pilot sites, four in Texas and one in a Chicago suburb, after about 18 months. McDonald’s CosMc’s originally opened eight locations, but three had shut down previously. The five still-operating sites as well as the CosMc’s app will be gone by the end of June, the company said. 

The CosMc’s name was derived from an extraterrestrial McDonaldland character who appeared in the chain’s advertisements from the mid-1980s through the early 1990s. The CosMc alien “craves McDonald’s food.”

McDonald’s had hoped that customizable CosMc’s drinks and snacks would siphon drive-thru business away from rivals such as Starbucks, the Associated Press reported. Several of the nation’s most rapidly growing beverage-focused brands – among them Dutch Bros, 7 Brew, Scooters and Swig – sell exclusively via drive-thru units, according to Restaurant Business. The publication also said Caribou Coffee Co. and some other traditional restaurant model competitors are pivoting to emphasize drive-thru business, too. 

Large Dunkin’ Franchisee Inks 12-unit Agreement with Slim Chickens: Vigario Management Corp., a large Dunkin’ and Baskin-Robbins franchisee based in Virginia, is back in the chicken business and CEO Andy Cabral said his family selected the right brand to grow their restaurant portfolio.

“The chicken segment is a very competitive space with lots of concepts, but we feel confident we made the right choice with Slim Chickens, which does so many things well,” said Cabral about signing a 12-unit agreement to open the fast-casual chicken brand in Virginia, Maryland and Delaware. “We’re excited to get going and see where we can take this brand here.”

Vigario is an umbrella corporation operating vertical construction, manufacturing and commercial real estate businesses. The group plans to open its first Slim Chickens near its homebase in Manassas, Virginia, in 2026, then continue to open stores over the next decade.

MOOYAH Names Industry Vet Michael Meche to Lead Brand: MOOYAH Burgers, Fries & Shakes announced today the appointment of Michael Meche as president. A seasoned restaurant executive with significant leadership experience, Meche will lead MOOYAH into its next stage of growth, focusing on franchisee success, operational excellence and people-oriented leadership.

Most recently, Meche served as Chief Restaurant Officer for sister brands Capriotti’s and Wing Zone, where he helped to elevate guest experience, enhance franchisee performance, and develop strong operating teams. He began his restaurant journey in high school as a team member at Papa John’s and steadily climbed the ranks to lead operations for more than 3,000 locations across North America and Canada. Now, as a North Texas native and longtime MOOYAH fan, Michael is prepared to use his passion for quality and community to build the brand.

Salad Spot Announces First Franchise Sale: Salad Spot today announced the signing of its first Area Development Agreement, bringing three new franchise locations to Utah County, Utah. The multi-unit deal marks the official launch of Salad Spot’s franchising efforts, signifying a milestone for the brand.

The first Salad Spot franchises have been awarded to the Nielsen family, a highly experienced group led by brothers Alex and Jared Nielsen, alongside their brother Nathan and father Jef Nielsen. Alex brings significant experience in large-scale real estate development for hotel chains, while Jared boasts a robust financial background in the franchising sector, currently serving as VP of Finance at Deka Lash. Their extensive due diligence included reviewing dozens of franchise opportunities before confidently choosing Salad Spot.

Pillar To Post Promotes Brenda Gemmell to Director of Consultant and Coach Success: Pillar To Post proudly announces the promotion of Brenda Gemmell to Director of Consultant and Coach Success. With nearly two decades of franchising experience and more than 360 franchises placed, Gemmell brings unmatched expertise to the brand’s executive-driven development strategy.

Before joining Pillar To Post, Gemmell spent 13 years in global tech at Intel, managing operations across 27 countries. After leaving the corporate world, she became a multi-unit franchise owner and a franchise development executive, eventually helping build a brand that was later acquired by Neighborly.  She also spent time as a top-producing franchise broker, placing candidates in industries from quick-service restaurants to home healthcare.

Kilwins Sweetens Texas with 10 New Locations Announced Across the Lone Star State: Kilwins is set to expand in Texas with 10 new locations. The store openings are scheduled to begin this summer.

“Texas is a natural fit for Kilwins,” said Brian Britton, president and CEO of Kilwins. “The climate supports year-round ice cream sales, the population is booming, and there’s an ideal balance of family-centric communities and Midwestern transplants who already know and love the Kilwins brand.”

Four stores are currently confirmed and under development in Waco, Midland, Cypress Waters (Dallas-Fort Worth area), and East Village (Austin). Two of these locations are expected to open in mid-2025: Waco in May and Midland in June. The Cypress Waters and East Village stores are scheduled to open by early 2026.

Barberitos Expands in Florida with 7-Unit Development Agreement: Barberitos has signed a 7-unit development agreement to grow in the Tampa/St. Pete market. 

Leading this expansion is Matt O’Neill, a Tampa Bay native and experienced restaurant operator and entrepreneur. In 2024, he opened his first Barberitos in Tampa – the second location in the state. With a second location underway and a new agreement signed to develop seven more, O’Neill is accelerating Barberitos’ growth across the Tampa/St. Pete market.

“I visited a Barberitos more than a decade ago and saw the potential for the concept in Tampa,” said O’Neill. “Tampa Bay is one of Florida’s most promising growth markets, and I’m confident it’s the right place to scale the brand.”

Pvolve Secures Five New Leases: Pvolve signing of five new studio leases.

The five new studios will be strategically located in Illinois, Kansas, Connecticut, and North Carolina. While the new Illinois locations deepen the brand’s presence in Chicago and the greater Chicagoland area, the studios in Kansas, Connecticut, and North Carolina represent Pvolve’s official debut in each of those states.

This growth comes on the heels of Pvolve’s Sculpt Anywhere campaign, launched in partnership with longtime member and official brand ambassador Jennifer Aniston. The campaign’s tour, which culminated in a high-energy finale in New York, is a reflection of Pvolve’s commitment to making clinically-backed fitness accessible anytime, anywhere.

Wienerschnitzel Announces New Locations Inside Walmart Stores: Wienerschnitzel, the world’s largest hot dog franchise, has been driving growth throughout its 60+ year legacy. Today, the brand announced it will soon add restaurants to multiple Walmart stores, fueling expansion into target markets through non-traditional avenues.

The brand’s growth inside Walmart locations will start with six restaurants, each owned and operated by local high-caliber franchisees. These restaurants will open within Walmart locations in Puyallup, WA, Alamogordo, NM, Tempe, AZ, Reno, NV, Colorado Springs, CO and Bakersfield, CA by fall of 2025.

K9 Resorts Names Scott Schubiger as Chief Growth Officer: K9 Resorts Luxury Pet Hotel announces the appointment of Scott Schubiger as Chief Growth Officer.

“I have been interested in K9 Resorts since meeting the founders, Jason and Steven Parker, at their original location a decade ago and have continued to admire the brand from afar,” said Schubiger. “Their passion and leadership, coupled with the brand’s commitment to excellence, truly stood out. I’m excited to help expand this beloved concept, bring in new franchise partners, and fulfill the increasing demand for luxury pet care.”

His appointment comes at a pivotal time, as findings in a recent industry report found that pet ownership has increased with 51% of U.S. households now owning a dog. Younger generations are a huge driver of this and hold high standards for how they care for their pets – from services to products.

Dunn Brothers Coffee Announces Benjamin Anderson as President: Dunn Brothers Coffee has named Benjamin Anderson as its new President. The appointment comes at the forefront of brand growth, with Anderson spearheading both franchise development and operations-focused initiatives.

Anderson joins Dunn Brothers Coffee with more than 25 years of experience in the food and beverage industry and a strong track record of leadership in the coffee and restaurant space. Most recently, he served as Vice President of Operations at Pentex Restaurant Group — a multi-brand franchisee of Taco John’s and HuHot Mongolian Grill — where he oversaw a 30% expansion in store count and led teams across eight states to drive profitability, strengthen employee retention and foster a culture of growth and collaboration.

Dave & Buster’s breaks ground on first Philippines location: Dave & Buster’s has broken ground on its first location in the Philippines, the company said Tuesday.The Coppell, Texas-based eatertainment brand said the groundbreaking marked “a major milestone” in the company’s global expansion.

Located at the Opus Mall in Manila, the new venue will introduce Dave & Buster’s blend of games, food, and sports viewing to the Filipino market.The groundbreaking ceremony, held in partnership with local franchisee The Bistro Group, welcomed company executives, local officials, and community leaders.

Freddy’s plans its debut in Canada: Freddy’s Frozen Custard & Steakburgers will open its first Canadian restaurant June 3 in Winnipeg, Manitoba, through a master franchise and development agreement with veteran franchisees Jim Werschler and Gregg Most of North 49 Frozen Custard and Steakburgers. The Manitoba area franchise owners also include John Hall and Turner Ethans.

“We’re thrilled to enter the Canadian market with our first location in Kildonan Crossing. Our convenient location makes us an easily accessible dining option for guests travelling by Regent Avenue and Lagimodière Boulevard, as well as guests looking for a great place to eat after shopping at our retail neighbors,” Hall said in a statement.

The Wolf

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