How Private Equity Is Rolling Up Franchise Restaurant Chains

Episode notes

Private equity has been on a buying spree in the franchise restaurant space, rolling up chains like Dunkin', Panera, and Wendy's. But the strategy isn't just about buying two hundred locations and squeezing costs - it's about a financial engineering play few people talk about: the lease-own arbitrage. Lucas and Luna break down how PE firms use sale-leasebacks to unlock hidden value in franchise real estate, using the 2020 Dunkin' acquisition by Inspire Brands as a case study. They explain why franchisees are often forced out in these deals, how the franchisor changes the game for existing operators, and what it means for the average customer who just wants a coffee and a bagel. Plus, a look at the regulatory pushback brewing in California and the Department of Justice. If you've ever wondered why your local sub shop suddenly changed owners and started feeling more corporate, this episode gives you the playbook.

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