1) Major Crunch Franchisee Buys 24 Hour Fitness Units to Grow in Florida

In Tony Scrimale’s view, it’s better to take a competitor out of a territory whenever possible rather than fight for market share.

That was the case with his company’s most recent acquisition, as CR Fitness Holdings bought nine 24 Hour Fitness locations in Florida. Already the largest Crunch Fitness franchisee at 75 locations, CR Fitness will convert the 24 Hour gyms to Crunch’s 3.0 design in what will likely be a four-stage process, said Scrimale.

The acquisition, continued Scrimale, the CEO of Tampa, Florida-based CR Fitness, “just made sense.” 24 Hour Fitness is based in California and the nine units it sold to CR Fitness were its only locations in Florida. “They weren’t going to grow in Florida, and from a management standpoint, to be a California-based company trying to manage nine clubs all the way out in Florida, it’s a better situation for us,” he said.

2) Wetzel’s Pretzels Growth Push Includes More Walmarts After Sale to MTY

Jon Fischer has led Wetzel’s Pretzel’s development efforts long enough to remember when the snack brand focused almost exclusively on growth in regional shopping malls.

A lot has changed for Wetzel’s the last five years. Private equity firm CenterOak Partners sold the brand to MTY Food Group, a Canadian public company, in late 2022 for $207 million and it’s been in the midst of a growth spurt since thanks in large part to development in non-traditional locations like Walmart and with food trucks and airports.

The company that celebrated its 30th anniversary and reached 400 units in 2024 also kick-started international development for the first time with store openings in Indonesia and Malaysia and with its first location in Mongolia slated to open this year.

3) Smoothie King Drives Consistent Growth Momentum in Q1 With 13 Store Openings and 20 New Store Commitments

Smoothie King, the world’s largest smoothie brand, announced its Q1 2025 business update today, showcasing another strong quarter of growth with 13 new store openings and 20 new store commitments added to its development pipeline. This marks the 15th consecutive quarter of securing 20 or more store commitments, reinforcing the brand’s consistent growth and the continued desire from entrepreneurs and franchisees to join the Smoothie King family.

In Q1 2025, Smoothie King opened 13 new stores across eight different states. Notably, more than half of these openings – seven locations – are located in Smoothie King’s home state of Texas, underscoring the brand’s strong presence and continued demand in the state. The brand is well positioned to continue building on this momentum heading into Q2.

The new agreements span 15 different markets across 12 states, including multi-unit deals in key markets such as Long Island, New York, and Phoenix, Arizona, further expanding Smoothie King’s national footprint. Consistent with previous quarters, nearly 60% of these signings were secured with existing franchisees, a testament to their ongoing confidence and belief in the brand’s momentum and mission to inspire healthy living.

EXTRA SAUCE 💥

Massachusetts Attorney General Cites 3 Franchisees for Child Labor Violations: The state of Massachusetts reached a settlement with three franchisees for violating the state’s child labor laws.Massachusetts Attorney General Andrea Joy Campbell announced the state cited Cafua Management Company, a Dunkin’ franchisee; The Brewster Company, a McDonald’s franchisee; and Knight Food Service, a Subway franchisee.

Against state law, Cafua allowed 16- and 17-year-olds to work more than nine hours a day and during hours not legally permitted by the state, including past 8 p.m. without an adult supervisor present.

Brewster, an eight-unit McDonald’s franchisee, also didn’t obtain proper work permits to employ those under the age of 18 and allowed the teenagers to work longer than the state limit of nine hours a day.The operator has to pay $63,930 in penalties.

Massachusetts also cited multi-unit Subway owner Knight Food Service for the same violations as Brewster and Cafua. Knight also reportedly didn’t provide meal breaks for minors who worked more than six hours a day, as required by state law. The operator was fined $22,455.

Crumbl AUVs Up Again After 2023’s First-Ever Decline: Crumbl’s average sales are up again after a slight decline in 2023—but it’s still down from 2022’s numbers. According to its franchise disclosure document released last week, Crumbl’s average unit volume among 858 locations was $1.35 million in 2024. About 45 percent of stores met or exceed the AUV.

The year prior, AUV was $1.16 million, down from 2022’s $1.8 million. Crumbl’s reported its first-ever AUV decline last year for 2023.Despite the roughly $200,000 increase in average unit sales last year, AUV is down 24.7 percent compared to 2022.

The number of units open for the entirety was 968 and 858, or 81 percent, of those stores reported sales numbers to the company by the time Crumbl filed the FDD.

Jack in the Box Closing Stores as It Looks to Offload Struggling Del Taco: Through what the company called a “block closure program,” Jack in the Box plans to shutter between 150 and 200 underperforming restaurants and may look for a buyer for the Del Taco business.

The moves, announced April 23, are part of an extensive reconfiguration of the business under new CEO Lance Tucker. Tucker, who did a stint with Jack in the Box from 2018 to 2020 but had just rejoined the company in January as chief financial officer, was quickly named interim CEO after Darin Harris’ departure in February. The company named him as its permanent CEO March 31.

Restaurant Vet Charlie Morrison Succeeds Peter Cancro as Jersey Mike’s CEO: Industry veteran Charlie Morrison was named the new CEO of Jersey Mike’s Subs, and will take over one of the largest sandwich companies with global sales exceeding $3.3 billion and with more than 3,000 locations in the United States and Canada.

Morrison succeeds founder Peter Cancro as Jersey Mike’s top executive after Cancro led the Manasquan, New Jersey-based company for the last 50 years. Cancro, who sold 90 percent of his stake in his company to Blackstone in a deal finalized in January, will remain chairman of the board and a significant minority shareholder. Nigel Travis, who served as CEO of Dunkin’ Brands from 2009 to 2018 and was executive chair for the company until 2021, has been named as lead director of Jersey Mike’s board that will also include Morrison. 

Morrison brings than three decades of industry experience to Jersey Mike’s. From 2012 to 2022, he was chairman and CEO of Wingstop, one of the largest chicken wing franchises. At Wingstop, Morrison grew the business from fewer than 500 stores to more than 2,000 locations in more than 10 countries while more than doubling average unit volumes and leading the company through its initial public offering in 2015.

Mosquito Authority & Pest Authority Prepare for Spring Pest Season with Eight New Locations Opening by End of April: Mosquito Authority and Pest Authority today announced sister brands gear up for spring pest season. Mosquito Authority is set to open four new locations by the end of April in California and Florida, and Pest Authority is slated to open four new territories by the end of April in California, Florida, Maryland and Wisconsin.

Pest Authority’s fourth-quarter 2024 franchise development included seven newly signed agreements for territories across California, Florida, Maryland, Michigan, Texas, Virginia and Wisconsin. New franchise locations slated to open this spring include Roseville, California, Daytona Beach, Florida, Glen Burnie, Maryland and Appleton, Wisconsin.

Proforma Announces Brand Team Promotions & Restructure: Proforma is excited to announce a series of promotions as part of a strategic Brand Team restructuring. These career advancements and department reorganization speak to Proforma’s intentional approach to continuing to fuel growth and advance the experience of Distributor Owners, Sales Professionals, and Support Center Team Members.

Recently promoted employees and their new roles include Marissa Jansen, Director of Brand Identity, and Gianna Mangino, Manager of Brand Marketing. They join Vice President of Brand Experience Patrick Magyar to manage Brand Department verticals, which are led by Chief Brand Officer Tim Nale.

Red Robin Gourmet Burgers, Inc. Announces Leadership Transition: Red Robin Gourmet Burgers, Inc. today announced that G.J. Hart will step down as President and Chief Executive Officer. After five-and-a-half years with the Company and the successful implementation of measures to elevate the guest experience and transform Red Robin into an operations-focused restaurant company, Mr. Hart will now transition to serving the industry through his various board commitments and mentoring the next generation of industry leaders.

David A. Pace, who currently serves as Chairman of the Board, will succeed Mr. Hart as President and CEO, effective immediately. Mr. Pace is a seasoned industry leader who will be focused on leading the Company through the next phase of its transformation. Mr. Hart will serve in an advisory capacity through September of this year to support a smooth transition.

In connection with this transition, Anthony S. Ackil, who currently serves as a Director on the Board, will succeed Mr. Pace as Chairman, also effective immediately. Mr. Pace will remain a member of the Board.

K9 Resorts Inks 13-Unit Agreement in Florida with its Largest Franchisee Group: K9 Resorts Luxury Pet Hotel has secured a multi-unit agreement to bring 13 locations to Florida. The deal is with the brand’s largest group of franchisees, Luxury Pet Hotel Investments, LLC (LPHI). 

Two locations within this agreement, Wellington and Pompano Beach, are already open to the public. 

“Pet ownership is at an all-time high, and there’s a significant demand in Florida,” shared Phil Nisbet, co-CEO of Luxury Pet Hotel Investments, LLC. “We look forward to spearheading K9’s growth in Florida and continuing to provide five-star service to dogs and their families.”

International Franchise Expo Returns to NYC May 29-31: The International Franchise Expo (IFE) will welcome attendees from more than 60 countries and 200-plus brands to New York City. The franchise show, which is organized by MFV Expositions and Comexposium, will be held May 29-31 in the Javits Convention Center. IFE is MFV’s only three-day trade show. 

In a news release about the May show, Martin Joksimovic, president of MFV Expositions, stated that the goal of his company’s events is to help entrepreneurs and investors explore franchising. “New York City has always been a primary gateway for global trade and commerce,” Joksimovic said, “making this event a premier opportunity for attendees interested in exploring business ownership as well as franchisors looking to expand their global reach.”