FROM THE WOLF DEN

1) Large Bankrupt Pizza Hut Franchisee to Sell All Remaining Restaurants

EYM Pizza, the Pizza Hut franchisee that filed for bankruptcy this summer amid a dispute with the franchisor, is selling its remaining restaurants in five states.

The sale of EYM Pizza’s 127 stores is part of a financial restructuring for the company, which is under multi-brand operator EYM Group. EYM Group, led by President Eduardo Diaz, is also a KFC, Denny’s and Panera Bread franchisee. Its pizza entity is working with M&A advisory and brokerage firm National Franchise Sales to identify buyers and facilitate the sale of restaurants in Illinois, Indiana, Georgia, South Carolina and Wisconsin.

2) Investors Allege Domino’s Committed Securities Fraud

Investors are suing Domino’s Pizza for alleged securities fraud, claiming the company knowingly misled investors in its long-term guidance.

Scott Bender, a shareholder who filed on behalf of all investors, sued Domino’s, CEO Russell Weiner and Chief Financial Officer Sandeep Reddy for false or misleading statements made between December 7, 2023, and July 17, 2024. The filing notes “hundreds or thousands of members” who purchased Domino’s securities during the period could join the class action suit.

The suit alleges Domino’s, Weiner and Reddy “had both the motive and opportunity to commit fraud” during the period. The suit was filed September 20 in Michigan’s Eastern District Court; Domino’s is based in Ann Arbor, Michigan.

3) Blackstone Sells Motel 6 to Indian Hotel Start-Up

Soon, a different company will be leaving the lights on for guests of Motel 6. Private equity giant Blackstone has announced that Oravel Stays will buy G6 Hospitality, an umbrella brand whose holdings include budget accommodation brands Motel 6 and Studio 6, for $525 million. Oravel Stays, which is based in Gurgaon in northern India, operates hotels under its OYO brand. The all-cash purchase is expected to close within the fourth quarter of this year, USA Today reported.

The budget hotel market is healthy and growing. Globally, that market was valued at $276.3 billion in 2022, according to Allied Market Research, and it’s projected to reach $430.9 billion by 2032, a compound growth rate of 4.1% annually. Allied Market Research defined budget hotels as reasonably priced lodging that offers basic amenities and services, and Motel 6 epitomizes that hospitality segment.

---

EXTRA SAUCE 💥

California’s Franchise Sales Disclosure Law Is Official: The International Franchise Association on Tuesday praised California Gov. Gavin Newsom for signing Senate Bill 919 into law. The new law extends disclosure requirements to third-party franchise sellers and will affect franchise brokers, broker networks and franchise sales organizations. It is scheduled to take effect in July 2026.

U.S. franchise sales are brisk, with a new franchise opening its doors approximately every eight minutes during each business day, according to a July 2024 report from digital marketing agency HigherVisibility. About 10.5% of U.S. businesses are franchises, with 80% of them regional or local brands and 16% national or global, HigherVisibility stated. The additional presale disclosures required by the new California law will help franchisee candidates choose a brand, whether big or small, that’s well-suited to their passions and finances. That, in turn, improves their chances of business success.

Bad Ass Coffee Gains More Steam in Florida: Announces 3-Unit Deal:  Bad Ass Coffee of Hawaii, a leading coffee franchise renowned for its premium sourcing of Hawaiian coffees and unforgettable cafés, announces a new three-store signed agreement in Florida. The first location is anticipated to open in Englewood at 1231 Beach Rd. in early 2025, with the additional two stores slated to open in the greater Port Charlotte market and surrounding communities over the next five years.

Schlotzsky’s Lands in Detroit: Five Locations Set to Open Over Next Five Years: GoTo Foods, the parent company of Auntie Anne’s®, Carvel®, Cinnabon®, Jamba®, McAlister’s Deli®, Schlotzsky’s®, and Moe’s Southwest Grill®, announces the expansion of Schlotzsky’s into the Detroit metro area with a five-unit signed franchise agreement.

Behind the signed agreement are business veterans and husband-wife duo, Vipul and Neha Patel who began their entrepreneurial journey with construction companies in Detroit and later, Subway. As long-time Detroit-area residents and lovers of a good sandwich, the two recognized an opportunity to bring Schlotzsky’s exceptional food and an elevated deli experience to their beloved community.

Pure Barre Announces Expansion Into Mexico: Pure Barre announced today it is opening in Mexico. The first location is slated to open in Q1 2025 in Mexico City. 

“Mexico is an emerging market for boutique fitness, and we believe Pure Barre’s pioneering barre method offering has a bright future there,” said Bob Kaufman, President of International at Xponential Fitness.

Driving Pure Barre’s expansion in Mexico is Enrique Lopez, General Director of Boutique X Fitness Studios, who has extensive experience in the fitness space with previous roles at Les Mills Mexico and Kinezis Mexico.

Handel’s Homemade Ice Cream Names Hillary Frei Chief Marketing Officer: Handel’s Homemade Ice Cream recently announced Hillary Frei as the new Chief Marketing Officer. 

“I am thrilled to have Hillary join our team! Her background in food and franchise, plus her experience with classic brands, like FAO Schwarz, and retro-inspired brands like Big Chill, make her a perfect fit for this role,” said Jennifer Schuler, CEO of Handel’s Homemade Ice Cream. “Hillary has been able to modernize and drive growth on several legacy brands while stewarding quality and honoring tradition. She is a world- class marketer and unwavering brand steward.”

The Honey Baked Ham Company® Welcomes Mark Mazur as Director of Franchise Sales and Development: The Honey Baked Ham Company®, the iconic brand known for its premium hams and delectable feasts, recently appointed esteemed franchise veteran, Mark Mazur, as its new Director of Franchise Sales and Development. Mazur will spearhead development for the brand with new and existing franchisees as it looks to build upon its impressive 400-plus locations nationwide.

With a decade of experience driving growth for some of the industry’s top brands, including Little Caesar’s and 7-Eleven, Mazur’s illustrious background has primed him with valuable insight to further expand the HoneyBaked brand. During his most recent role with Little Caesar’s, Mazur oversaw Northeastern development, managing new store growth and providing franchisees with the necessary tools and resources to run successful restaurants.

Marco’s Pizza Announces Signed Agreement Set to Bring 3 New Stores to Virginia: Marco’s Pizza, one of the nation’s fastest-growing pizza brands, announces a signed 3-unit development agreement in Virgina, a key development state. Site selection is currently underway across Bristow, Haymarket, Centreville, and more, with the first location set to open in Q2 2025.

Behind the development agreement is powerhouse entrepreneur Marcel Clarke. He boasts an impressive background with success and proven expertise across multiple industries, from real estate development and commercial cleaning enterprises to stock market and cryptocurrency investments, alongside various other joint ventures, plus executive coaching and mentorship programs. His vast experience and business acumen well-equip him to take on Marco’s franchise opportunity as a multi-unit operator.

A Place At Home Expands Franchise Business Coach Team: A Place At Home hired hired two new franchise business coaches. The new hires of Shane Thompson and Tiffany Dutcher will now assist Jennifer Axelrod with coaching A Place At Home franchise owners. Thompson and Dutcher bring personal experiences as senior care franchise owners.

“We’re thrilled to welcome Shane and Tiffany to our team,” said Jerod Evanich, co-founder and president of A Place At Home. “Their remarkable track records and deep understanding of the senior home care franchise industry make them invaluable assets for our franchise owners.”