Two iconic brands, Subway and Jersey Mike's, may sell to private equity after years of being closely held. Heavyweight PE firms are an increasing force within the franchising sector, marking a strategic shift and altering the industry landscape.
Roark Capital's proposed acquisition of Subway introduces a significant pivot. This strategy shift towards a substantial debt model underlines the evolving dynamics of franchise growth and capital structure, spotlighting the broader acceptance of whole business securitization as a cornerstone in franchise financing.
Subway has been attempting to sign new franchisees to multi-unit deals to improve its ownership model. However, the franchisees it's looking for aren't taking the bait.
The footlong-swinging sandwich chain has been in turnaround mode since at least 2019. But now, the business is reportedly considering selling itself off, according to new reports.
What trends are tops? What brands have proved most lasting? What franchise may be the right opportunity for you? Explore, absorb, and learn from our annual list.