Tracing the restaurant franchising boom

Why are so many chains investing in rapid franchise expansion? What states and segments are the most attractive? Restaurant Dive explores these questions and more in a four-part article series.

Oct. 18, 2021

Restaurants are plotting aggressive franchise expansion. Here’s where — and why.

Surging diner demand, strong franchising sales and second-generation real estate left by shuttered eateries have created a market primed for expansion, with chains targeting Southern states with lax COVID-19 rules.

By Emma Liem Beckett • Oct. 18, 2021

Caribou Coffee adds franchising to its US system for the first time

The chain is seeking franchisees for multi-unit deals and will open a mix of its smaller, drive-thru-focused Caribou Cabin prototype and traditional stores.

By Alicia Kelso • Oct. 12, 2021

Papa John’s signs largest domestic franchise deal ever

Sun Holdings has agreed to open 100 units in high-growth markets across Texas by 2029, a move that follows several large deals signed by the pizza chain to expand in new and existing international regions. 

By Julie Littman • Sept. 29, 2021

Delight Restaurant Group adds 54 Wendy’s from NPC International sale

With the acquisition, the franchisee will operate 111 Wendy's and Taco Bell locations across four states.

By Alicia Kelso • March 29, 2021

Bojangles’ largest franchisee plots 45-unit expansion

Operator Jeff Rigsby of BOJ of WNC will develop restaurants in his existing markets of Georgia, Kentucky, North Carolina and Tennessee, as well as move into Columbus, Ohio.

By Julie Littman • March 2, 2021

Hooters’ fast casual chain Hoots Wings signs first franchise deal

Hoots Wings plans to open 60 franchised locations through its new agreement with Dallas-based AE Restaurant Group. 

By Alicia Kelso • Feb. 25, 2021

Noodles & Company plots multi-unit franchise expansion

The fast casual chain is looking to grow its footprint in Southern and Southwest markets, with a focus on off-premise operations.

By Emma Liem Beckett • Feb. 19, 2021

McDonald’s agrees to independent review of contentious technology fees

At the request of the National Franchisee Leadership, which claims that no outstanding fees were due, the chain said it plans to enlist Ernst & Young to provide certainty that payables are owed. 

By Alicia Kelso • Feb. 16, 2021

McDonald’s USA president wants to improve transparency with operators

Joe Erlinger's message comes as tensions over 2021 franchising fees reach a boiling point, with operators agreeing to cut off nonessential communication with corporate and pushing for the formation of a tech co-op. 

By Emma Liem Beckett • Dec. 23, 2020

McDonald’s franchisees calls for tech co-op amid new fees, Restaurant Business reports

The National Owners Association's latest push follows news of a $423-per-month technology investment cost added to operators' plates to cover a $70 million "lag" from the old payment structure.

By Alicia Kelso • Dec. 22, 2020

McDonald’s USA president calls for end of corporate communication freeze, Restaurant Business reports

Joe Erlinger called on franchisees in a video Thursday to end a six-week halt in nonessential communication with corporate, which was incited by frustration over new fees and the end of a Happy Meal subsidy. 

By Emma Liem Beckett • Updated Jan. 22, 2021

Hooters to expand its fast casual chain through franchising

Parent company HOA Brands wants to take the seven-unit wings concept to more than 100 units by 2022.

By Julie Littman • Dec. 8, 2020

McDonald’s US franchisees to shoulder more costs, Bloomberg reports

The fast food chain is ending a $300-per-month subsidy it pays each franchisee and is shifting operators to a "pay as you go" model for tech investment, and operators told Restaurant Businesses these changes caught them by surprise. 

By Emma Liem Beckett • Dec. 4, 2020

Wendy’s wants to buy NPC International’s 393 units

The QSR put forth a consortium bid with a group of pre-qualified franchisees a week after it filed an objection to a deal proposed by stalking horse bidder Flynn Restaurant Group. 

By Julie Littman • Nov. 19, 2020

Sun Holdings acquires bankrupt IHOP locations

Sun Holdings subsidiary Suncakes LLC bought 41 out of 49 IHOP locations from CFRA Holdings, which filed for bankruptcy in May. 

By Alicia Kelso • Oct. 16, 2020

Pizza Hut’s largest franchisee declares bankruptcy

NPC has come to an agreement with its lenders on a restructuring plan to reduce the company's significant debt, which includes plans to sell its 385 Wendy's restaurants.

By Emma Liem Beckett • July 1, 2020

Subway franchisees file FTC complaints over Footlong promotion

The sandwich chain brought back its $5 Footlong promotion on Tuesday despite ongoing pushback from franchisees claiming the offer is unprofitable. 

By Alicia Kelso • June 17, 2020

McDonald’s franchisees want to keep limited menu post-coronavirus

The National Owners Association told members last week the smaller menu helped improve service times and sales.

By Emma Liem Beckett • June 8, 2020

Denny’s, IHOP franchisees close restaurants

Feast American Diners shuttered 15 Denny's in New York due to the impact of COVID-19, just weeks after an IHOP franchisee filed for bankruptcy and closed 49 units.

By Alicia Kelso • May 28, 2020

McDonald’s warns franchisees of potential retrenchment from coronavirus crisis

McDonald’s U.S. President Joe Erlinger told operators on a call last week that they may have to consider selling locations or downsizing, Bloomberg reports. 

By Alicia Kelso • May 21, 2020

McDonald’s reopening requirements saddle operators with more costs

The chain's 59-page reopening guide for its U.S. restaurants includes purchasing recommendations for a $718 touchless sink and $310 automatic towel dispenser, The Wall Street Journal reports. 

By Alicia Kelso • May 15, 2020

Franchisees struggle alongside independents to ‘keep the lights on’ amid COVID-19

Up to 30,000 franchise businesses will lose all liquidity in the next month as paid sick leave and inflexible business interruption insurance clauses put extra pressure on operations.

By Emma Liem Beckett • April 1, 2020

Burger King parent will give operators $70M in cash advancements

Restaurant Brands International is also pausing remodel obligations and deferring rent payments at properties it controls to free up cash for franchisees during the novel coronavirus pandemic. 

By Alicia Kelso • March 31, 2020

Burger King’s biggest franchisee reverses decision to cut staff pay 10%

Hourly reductions will only apply to staff above store-level workers and CEO Dan Accordino will forgo his salary for three months, Carrols told employees in a memo.

By Emma Liem Beckett • Updated March 25, 2020