The Buyout Show with Fexingo · 2026-07-17 · 12 min
Private equity has been quietly consolidating the franchisee side of the business for years - buying up the owners who operate multiple McDonald's, Pizza Hut, or Great Clips locations. In this episode, Lucas and Luna examine the case of Sun Holdings, one of the largest Burger King franchisees in the US, which was acquired by KKR in 2022. They break down why PE firms are targeting multi-unit franchise operators, how the economics work (including the typical 6 - 8 times EBITDA multiples), and what it means for the franchisors themselves. They also touch on the broader roll-up strategy in franchise services, from car washes to fast food, and why this trend has accelerated since 2020. Specific data points include the number of franchise units in the US (over 800,000) and the fact that the top 1% of franchisees now control over 20% of all units. If you've ever wondered who really owns your local franchise restaurant, this episode is for you.
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