🍟 5/21/2024 – Chip City Receives (Another) Investment

1) Danny Meyer Invests (Again) In Chip City

The cookie space is proving attractive to investors and customers alike as brands like Crumbl make headlines and gain strong followings.

Shake Shack founder Danny Meyer’s Enlightened Hospitality Investments closed a $7.5 million Series B funding with Chip City Cookies. The private equity firm previously invested $10 million in the concept.

2) Stride Fitness Fully Divested

When Katie Ownbey and Misa Casey sold Stride to Xponential Fitness in 2019, it was with the hope of seeing the concept expand nationwide via franchising under the multi-brand platform company of boutique fitness brands. Five years later and with just 16 locations, however, Stride is changing its format under a new owner as it aims to evolve the brand positioning as a provider of treadmill-based workouts.

“It’s a great brand. It just never really caught traction because Xponential rolled it out just at the start of COVID,” said Shaun Grove, the former president of Rumble Boxing who formed Stride Fitness Franchising and acquired Stride in February following Xponential’s divestiture of the brand. “I don’t think Xponential did the best job it could have in rolling it out. I attribute that a lot to the timing … we had a lot to deal with with COVID in fitness.”

3) Burger King Finalizes Carrols Acquisition

Restaurant Brands International acquired Burger King’s largest franchisee, Carrols Restaurant Group, the company announced May 16.

RBI announced its plan to acquire the public company in January. It already owned 15 percent Carrols’ stock. At $9.55 per share, the deal is worth about $1 billion. Burger King will invest $500 million to modernize more than 600 of Carrols’ restaurants over the next seven years.

Cousins Maine Lobster Announces Key Leadership Changes : Cousins Maine Lobster Co-Founders, Jim Tselikis and Sabin Lomac, announced today a series of leadership changes in support of their plans for expansion, anchored by the appointment of Shaun Higgins as President.

Large McDonald’s Franchisee Sues Corporate for Alleged Ouster Attempt 

A 37-unit McDonald’s operator is suing his franchisor, claiming the fast food giant is trying to drive him from the system.

The suit, filed May 9 in the Eastern District of New York, said McDonald’s reported decision to not renew five of George Michell’s franchises was done so in “bad faith.”

Michell is a franchisee with 37 McDonald’s stores in New Jersey, New York, Connecticut and Massachusetts. He also owns eight non-McDonald’s restaurants and bars in Hartford, Connecticut’s Bradley International Airport. He subleases the space from McDonald’s. Last year, his McDonald’s units did $158 million in revenue.

BELFOR Franchise Group Acquires JUNKCO+ 

Strategic Move Aims to Meet Growing Demand in the Junk Removal Industry

BELFOR Franchise Group has added JUNKCO+ to it wide-ranging portfolio of service brands. JUNKCO+ handles basement-to-attic residential and commercial junk removal, and will haul off unwanted items (including furniture, appliances, electronic gear and hot tubs), do post-demolition cleanup, and provide demolition services (including shed, deck and mobile home demolition). The company also will clear out estates and remediate hoarding situations. 

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